Tower Semiconductor Ltd. (NASDAQ:TSEM) is one of the top must-buy semiconductor stocks to invest in now.
Wedbush lifted the price target on Tower Semiconductor Ltd. (NASDAQ:TSEM) to $300 from $140 on May 14, reiterating a Neutral rating on the shares
The firm stated that it sees the company’s fiscal Q1 results and commentary as positive. It also very much acknowledges that it missed the velocity of the ongoing transition to optical datacenter networking when it made the decision to move to a Neutral view on the stock late last year. The rating update came after Tower Semiconductor Ltd. (NASDAQ:TSEM) announced on May 13 the signing of Silicon Photonics (SiPho) contracts for $1.3 billion for 2027 revenue with its largest customers, along with the receipt of $290 million in customers’ prepayments for capacity reservation.
Management stated that the initial commitment is further reinforced by an even larger contractual wafer commitment for 2028, with additional associated prepayments due by January 2027. It also stated that the long-term agreements bolster the company’s strategic position in the rapidly expanding optical connectivity market. Tower Semiconductor Ltd. (NASDAQ:TSEM) provides semiconductor solutions.