Tower Semiconductor's 2028 guidance makes its shares attractively valued around $180 despite competition from Silith, GlobalFoundries, STMicroelectronics and others. The stock previously felt too rich to add to. x.com  x.com 

GlobalFoundries' new silicon germanium capacity deal with Marvell doesn't fix its position, because its SiGe is mediocre next to Tower's, though the gap is smaller than in silicon photonics. Semtech, and likely Macom, use Tower. x.com  x.com 

Tower Semiconductor's good news looks mostly priced in at a $27 billion market cap, with upside hinging on capacity timing. A reported BofA Buy call with a $367 target rests on Tower's silicon photonics lead, and the numbers have substance: SiPho's run rate rose from $180 million to $680 million in a year, backed by a $1.3 billion 2027 contract. But its Arai, Japan fab reaches full production only in Q4 2027, a delay would push back the 2028 model, and $367 assumes those targets are hit on time. … Show more

Tower Semiconductor's stronger-than-expected capacity expansion lets it fill more optical-chip orders itself, reducing customers' incentive to move to foundries they regard as technologically weaker. Its hybrid bonding packs dense connections between photonic chips and their driver electronics, an advantage viewed as effectively unmatched among Western suppliers. Tower remains one of the highest-conviction holdings despite the portfolio trim. x.com 

Tower Semiconductor is building the foundry that silicon photonics needs, alongside its power management business, and its chart is flashing a blue buy signal again. x.com 

Tower Semiconductor is a short because the market cannot digest competition. It sits on a short list alongside rates, TSMC, Vertiv, ASML and Broadcom; GlobalFoundries is not counted as that competition. x.com  x.com 

Tower Semiconductor looks set to be the leading silicon-photonics foundry as the path to CPO runs through NPO. First NPO deployments are planned for 2027, with $1.3B of contract value for 2027 alone and more after. A multi-year IQE epi-wafer deal protects it from the InP bottleneck, it is bringing laser-to-silicon bonding in-house, and a dual-track 300 mm plan in Japan aims to quadruple capacity without dilution. Its SiPho coherent modules for Marvell have passed multi-million units. x.com 

Tower Semiconductor's silicon photonics ramp is running ahead of schedule, per Wedbush, pulling it into a better revenue and margin mix from AI datacenter optics. Q1 revenue beat, gross margin hit 26.8%, and about $290 million of prepayments back $1.3 billion of contracted 2027 SiPh revenue, which management calls a floor. Wedbush sees CPO share shift as a risk from 2028 at the earliest. It raised its target to $300 from $140 but stays Neutral, seeing the good news as increasingly priced in. … Show more

Tower Semiconductor probably has little upside left, trading at 43x the $500M net profit it projects once its foundry buildout is complete and running at 85% utilization. By contrast, TSMC trades at 24x 2026 earnings. x.com 

GlobalFoundries' margins should rise relative to Tower Semiconductor's, if reports on each company's 8-inch to 12-inch transition and capacity ramp are correct, even though both now have similar net margins. GlobalFoundries also trades at a much cheaper multiple than Tower. x.com