TSEM stock forecast, quote, news & analysis
Tower Semiconductor Ltd is a pure-play specialty foundry that manufactures semiconductors... Show more
Why Tower Semiconductor (TSEM) Stock Is Down -17.8% in the Last 30 Days
Key Takeaways
- Tower Semiconductor (TSEM) fell roughly 17.8% over the last 30 days, from a $223.60 close on September 18, 2026, to $183.78.
- The pullback accelerated in mid-October, including an 8.25% single-session drop on October 20 even as the broader semiconductor sector advanced.
- TSEM trades about 42% below its 52-week high of $319.94, reached on June 22, 2026, despite record revenue and guidance.
- Operating momentum remains strong, with second-quarter revenue up 24% year over year and third-quarter revenue guided to a record $520 million.
- Third-quarter results and fourth-quarter guidance are scheduled for November 2, 2026.
Tower Semiconductor (TSEM) Company Overview and Market Position
Tower Semiconductor Ltd. is a specialty foundry and a leading manufacturer of high-value analog semiconductor solutions. The company develops process technologies and manufacturing platforms for analog, mixed-signal, RF, power management (BCD), silicon germanium (SiGe) BiCMOS, silicon photonics (SiPho), CMOS image sensors, non-imaging sensors, and display drivers. Its customers span consumer, industrial, automotive, mobile, infrastructure, medical, and aerospace and defense markets.
Tower operates 200mm fabs in Israel and the United States, two fabs in Japan (200mm and 300mm) through its 51% stake in TPSCo, and shares a 300mm facility in Agrate, Italy, with STMicroelectronics. Investors follow the stock for its exposure to AI-driven data-center demand, particularly through silicon photonics and high-speed analog connectivity, where Tower has secured significant long-term customer commitments.
Tower Semiconductor (TSEM) Stock Price Performance: Last 30 Days vs. Quarter
Over the last 30 days, TSEM declined approximately 17.8%, moving from a closing price of $223.60 on September 18, 2026, to $183.78. The move was not a straight line: shares rallied through early October, reaching an intraday high near $268.93 on October 6, before reversing sharply through the second half of the month and giving back those gains.
The broader three-month trend shows a similar picture of volatility with a downward bias. From a close of about $227 in mid-July, the stock has fallen roughly 19%. This multi-month decline extends a longer slide from the stock's 52-week high of $319.94 set in late June 2026, reflecting a sustained valuation reset despite ongoing business momentum.
What Drove TSEM Stock Price in the Last 30 Days
The recent decline appears driven primarily by de-risking and a valuation reset rather than any deterioration in fundamentals. On October 13, Tower and Semtech announced an expanded multi-year agreement in which Semtech will invest in dedicated SiGe capacity at Tower to support demand for AI data-center optical interconnect components. The news was positive for Tower's long-term silicon photonics and connectivity position, yet the stock still fell through the rest of the week.
The selling stood out against a rising semiconductor sector. On October 20, TSEM dropped 8.25% while the Philadelphia Semiconductor Index advanced, suggesting stock-specific profit-taking. With the shares carrying an elevated forward earnings multiple after a dramatic run-up, investors appeared to be reducing exposure ahead of the November 2 earnings report, which will include fourth-quarter guidance.
What Drove TSEM Stock Performance Over the Last Quarter
Over the trailing three months, TSEM's decline reflects a broader reassessment of AI-related semiconductor valuations. The stock had surged from a 52-week low of $71.64 to a high of $319.94 by late June 2026, and the subsequent pullback has been a gradual giveback of a large portion of those gains.
Fundamentals, however, continued to improve during the period. Second-quarter revenue reached $460 million, up 24% year over year, with adjusted EPS of $0.88 beating estimates, and the company guided to record third-quarter revenue of $520 million, up 31% year over year. Tower also cited $1.3 billion of contracted silicon photonics revenue for 2027 and reiterated a financial model targeting $2.8 billion in annual revenue and $750 million in net profit by 2028. The gap between strengthening operations and a falling share price points to valuation and positioning pressures rather than weakening demand.
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TSEM Stock Forecast Drivers: What Investors Should Watch Next
The primary near-term catalyst is Tower's third-quarter earnings report and fourth-quarter guidance on November 2, 2026. Investors will be watching whether revenue lands at or above the guided $520 million midpoint and, more importantly, whether the fourth-quarter outlook sustains the company's sequential growth trajectory.
Beyond earnings, key factors include the pace of silicon photonics and SiGe capacity ramps tied to AI data-center connectivity, the execution of the expanded Semtech partnership, and the broader semiconductor sector's valuation dynamics. Macroeconomic conditions, interest rates, and shifts in AI-investment sentiment could also continue to influence the stock given its elevated multiple. These considerations are informational and do not constitute financial advice.
Disclaimer
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TSEM in downward trend: price dove below 50-day moving average on October 12, 2026
TSEM moved below its 50-day moving average on October 12, 2026 date and that indicates a change from an upward trend to a downward trend. In 20 of 29 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are 69%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 09, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on TSEM as a result. In 45 of 79 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 57%.
The Moving Average Convergence Divergence Histogram (MACD) for TSEM turned negative on October 12, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 49 similar instances when the indicator turned negative. In 30 of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at 61%.
The 10-day moving average for TSEM crossed bearishly below the 50-day moving average on October 19, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 9 of 15 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 60%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TSEM declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 65%.
TSEM broke above its upper Bollinger Band on October 06, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for TSEM entered a downward trend on November 03, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where TSEM's RSI Indicator exited the oversold zone, 15 of 30 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 50%.
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
Following a +8.26% 3-day Advance, the price is estimated to grow further. Considering data from situations where TSEM advanced for three days, in 220 of 312 cases, the price rose further within the following month. The odds of a continued upward trend are 71%.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 15 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 51 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 77, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is 64 (best 1 - 100 worst), indicating steady price growth. TSEM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 71 (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 86 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (5.972) is normal, around the industry mean (6.097). P/E Ratio (63.447) is within average values for comparable stocks, (18.355). Projected Growth (PEG Ratio) (3.426) is also within normal values, averaging (3.803). Dividend Yield (0.000) settles around the average of (0.012) among similar stocks. P/S Ratio (13.514) is also within normal values, averaging (46.468).
The Tickeron Seasonality Score of 95 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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General Information
a manufacturer of integrated circuits and customizable wafer processes
Industry Semiconductors