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TSEMTower Semiconductor Ltd.Sell5.5·$189.08
SellModerate Confidence
Investment thesis

Tower Semiconductor has beaten earnings estimates in all 4 of the last 4 quarters with an average 10.9% positive surprise and shows strong revenue and earnings growth scores of 8.2 out of 10, but a forward P/E of 50x with a PEG of 8.26 reflects expensive growth expectations that leave little margin for error.

Thesis pillars

  • Strong Growth Semiconductor Profile—
  • Expensive Valuation High Pe↑Improving
  • Perfect Earnings Beat Streak Growth↓Deteriorating
  • +1 more pillar — see the Why tab for full reasoning

Pillars as of Jul 3, 2026

Full reasoning →

Open full analysis

Tower Semiconductor Ltd. (TSEM) Stock Analysis

SellGrowthModerate Confidence

Technology · Semiconductors

Earnings in 5 days (2026-11-02). Expect elevated volatility around the report — consider waiting for post-earnings price action before new entries.

Sell if holding. Momentum 2.1/10 is below the 5.0 floor at $189.08 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Sector modifier (Technology): -0.8; Earnings in 5 days (event risk).

Tower Semiconductor Ltd., an independent semiconductor foundry, provides technology, development, and process platforms for integrated circuits in the United States, Japan, rest of Asia, and Europe. It provides customizable process technologies, including SiGe, SiPho, mixed... Read more

$189.08+44.0% A.UpsideScore 5.5/10#37 of 53 Semiconductors
QualityF-score8 / 9FCF yield0.78%
Stop $175.84Analyst target $272.24(−13% haircut)A.R:R 2.9:1
Analyst consensus$312.93+65.5%10 analysts
$272.24Analyst target
$189.08price
$312.93mean
$355

Sell if holding. Momentum 2.1/10 is below the 5.0 floor at $189.08 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Sector modifier (Technology): -0.8; Earnings in 5 days (event risk). Chart setup: No clear chart pattern; technical signals are mixed. Score 5.5/10, moderate confidence.

Passes 6/8 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and earnings proximity 5d<=7d. Suitability: speculative.

news + 30-day 8-K events · 5-min refresh

Recent developments

updated 2026-10-28
TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Mon, Nov 2, 20265d to earnings· next earnings call

Thesis

Rewards
Strong earnings beat streak (4/4)
Strong growth profile
Analyst upside: 44%
Risks
Sector modifier (Technology): -0.8
Earnings in 5 days (event risk)
Expensive valuation

Key Metrics

P/E (TTM)74.7
P/E (Fwd)28.2
Mkt Cap$21.5B
EV/EBITDA33.5
Profit Mgn16.9%
ROE10.0%
Rev Growth23.7%
Beta0.89
DividendNone
Rating analysts13

Quality Signals

Piotroski F8/9MoatNarrow

Options Flow

P/C1.87bearish
IV101%elevated
Max Pain$140-26.0% vs spot

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy

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About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.

Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.

Conflicts and positions. People who build TrendMatrix, or entities they control, may hold positions, long or short, in securities it covers, and may trade them at any time. Positions are not disclosed individually. Verdicts are generated by an automated model applied by the same rules to every covered stock, and are not adjusted for any position held by the people who build TrendMatrix. We do not accept payment from issuers for coverage.

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No fiduciary duty. No fiduciary, advisory, or agency relationship is created between you and TrendMatrix by reading our content or subscribing to our service.

Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.

Methodology · Editorial policy & full disclaimer

Rating Breakdown

2 floor-breakers·1 ceiling hit

Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static

Macd
0.0
Obv
1.0
Ma Position
2.2
Rsi
3.0
Volume
4.1
Capitulation risk (RSI 28, below 200MA)Volume distribution (falling OBV)Below 200-MA but MA still rising (+7.8%/30d) — pullback in uptrend, not confirmed weakness

Priced at a premium — multiples above sector norms. Needs delivery on growth + margins to justify.static

Ev Ebitda
0.0
Pe
1.3
Ps
1.7
Peg Ratio
3.4
Forward Pe
4.4
Analyst Target
9.0
Forward P/E: 28.2xPEG: 3.43
GatesMomentum 2.1<4.5EARNINGS PROXIMITY 5d<=7dA.R:R 2.9 ≥ 1.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARSuitability: Speculative
RSI
28 · Oversold
↓ 20D MA↓ 50D MA↓ 200D MAGOLDEN CROSSSupport $163.69Resistance $268.93

Price Targets

$176
$272
A.Upside+44.0%
A.R:R2.9:1

Position Sizing

ConvictionNone
Suggested %0%
Max %0%
RegimeRisk-Off

Risk Alerts

! Red flag in news: 'delisting'
! momentum at 2.1 (below the engine's 4.5 threshold)
! EARNINGS_PROXIMITY:5d<=7d

Earnings

B
B
B
B
4/4 beats
Next Earnings2026-11-02 (5d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is TSEM stock a buy right now?

Sell if holding. Momentum 2.1/10 is below the 5.0 floor at $189.08 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Sector modifier (Technology): -0.8; Earnings in 5 days (event risk). Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $175.84. Score 5.5/10, moderate confidence.

What is the TSEM stock price target?

Analyst target: $272.24 (+44.0% upside). Prior stop was $175.84. Stop-loss: $175.84.

What are the risks of investing in TSEM?

Sector modifier (Technology): -0.8; Earnings in 5 days (event risk); Expensive valuation.

Is TSEM overvalued or undervalued?

Tower Semiconductor Ltd. trades at a P/E of 74.7 (forward 28.2). TrendMatrix value score: 3.8/10. Verdict: Sell.

What do analysts say about TSEM?

13 analysts cover TSEM with a consensus score of 4.1/5. Average price target: $313.

What does Tower Semiconductor Ltd. do?Tower Semiconductor Ltd., an independent semiconductor foundry, provides technology, development, and process platforms...

Tower Semiconductor Ltd., an independent semiconductor foundry, provides technology, development, and process platforms for integrated circuits in the United States, Japan, rest of Asia, and Europe. It provides customizable process technologies, including SiGe, SiPho, mixed signal CMOS, RF CMOS, CMOS image sensors, non-imaging sensors, wafers, and integrated power management. The company also offers a design enablement platform for a design cycle, as well as transfer optimization and development process services to integrated device manufacturers and fabless companies. It serves consumer applications, personal computers, communications, handsets and smartphones, automotive, industrial, aerospace, and medical device markets. The company was incorporated in 1993 and is headquartered in Migdal Haemek, Israel.

Related stocks: SIMO (Silicon Motion Technology Corpo) · CRUS (Cirrus Logic, Inc.) · CRDO (Credo Technology Group Holding ) · MPWR (Monolithic Power Systems, Inc.) · NXPI (NXP Semiconductors N.V.)
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