On August 12, Tower Semiconductor rose 6.53% in regular trading, trading at $263.17/share, with turnover of $61.59 million. Multiple catalysts continued to drive the stock higher.
On the earnings front, the company reported Q2 adjusted EPS of $0.88, beating the consensus estimate of $0.76 by 15.8%. Revenue came in at $460.08 million versus the $454.68 million estimate. Q3 revenue guidance of approximately $520 million significantly exceeded the market expectation of $490 million. Notably, silicon photonics annualized revenue surged from $180 million a year ago to $680 million, driven by strong AI compute demand for optical interconnects.
On the coverage front, BofA Securities initiated coverage on August 7 with a Buy rating and a $367 price target. Additionally, OpenLight and Tower jointly released a photonics PDK on the PH18DA platform with completed Cadence EDA tool integration, further strengthening the product ecosystem.
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