The Israeli chipmaker reports $1.3 billion in silicon photonics deals, driving Q1 revenue growth and exceeding Wall Street expectations.
Tower Semiconductor announced $1.3 billion in contracts for silicon photonics chips, targeting 2027 revenue as AI data center demand surges. Customers paid $290 million upfront, with additional advance payments expected by January 2027.
First-quarter revenue rose 15% year over year to $414 million, while gross profit jumped 52% to $111 million. Net profit reached $65 million, or $0.58 per share, up from $40 million, or $0.36 per share, in Q1 2025.
The company’s Q2 revenue guidance of $455 million surpassed Wall Street’s $436.4 million estimate, signaling 22% growth. Shares surged over 17% in premarket trading.