Tower Semiconductor's stock plummeted 6.66% intraday, extending recent declines.

The drop reflects continued profit-taking following the stock's cumulative surge of over 40% earlier in the week, driven by better-than-expected first-quarter results and the announcement of a $1.3 billion long-term silicon photonics supply contract for AI data centers. The company reported Q1 adjusted EPS of $0.65, beating estimates, while revenue rose 15% year-over-year to $413.6 million, with Q2 revenue guidance also exceeding analyst expectations.

After the sharp rally, the stock had already pulled back, and the continued decline appears driven by individual stock-level profit-taking rather than sector-wide weakness, as the broader semiconductor sector traded relatively flat.