Tower Semiconductor: Buy The Story, Respect The Risks
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Cyn Research747 FollowersFollow5ShareSavePlay(10min)CommentsSummaryTower Semiconductor Ltd. is positioned as a key specialty foundry beneficiary of the AI infrastructure buildout, particularly in silicon photonics and silicon germanium.TSEM's revenue and profit growth are accelerating, with significant capacity expansion underway and over 70% of new capacity reserved through 2028.Valuation is elevated (P/E 97, P/S 12), but ramped projections suggest a 2028 P/E of 20–25, assuming conservative utilization and excluding potential upside from Intel agreements.I initiate TSEM at Buy for swing trades, advising caution due to geopolitical risks, valuation, and volatility; a pullback may offer a better entry. Rasi Bhadramani/iStock via Getty Images Introduction Tower Semiconductor Ltd. (TSEM) is an Israeli-based, Nasdaq-listed specialty semiconductor foundry that has flown under the radar for years but is now starting to attract more investor attention as the market looks forThis article was written byCyn Research747 FollowersFollowHi! I'm a passionate investor who has been researching publically traded companies for over 6 years. My primary focus is on identifying great businesses at reasonable prices and holding them for the long term but I also dive into trend following strategies from time to time. While I have a slight bias toward technology companies, I maintain a broad perspective, including opportunities in crypto. I take a global approach to investing, occasionally seeking value beyond the U.S. market. Thanks for reading!Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Short position through short-selling of the stock, or purchase of put options or similar derivatives in TSEM over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.