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# Tower Semiconductor Stock Plunges 8%, Wiping Out $1.6 Billion, Despite Record Quarter
- URL: https://www.bullished.co/tower-semiconductor-stock-plunges-8-wiping-out-1-6-billion-despite-record-quarter-5b61d10b/
- Published: 2026-11-02T14:51:29.000Z
- Updated: 2026-11-02T14:51:29.000Z
- Description: The specialty chipmaker posted record third-quarter sales of $526 million and guided the fourth quarter to $600 million.
- Author: Matteo Parrino
- Tags: Markets, TSEM, Industry: Technology

[Tower Semiconductor](https://www.bullished.co/tag/tsem/), a specialty chip foundry, saw its [shares fall 8.42% to $152.47](https://seekingalpha.com/news/4662090-tower-semiconductor-rises-as-strong-forecast-signals-record-growth-phase?ref=bullished.co) in Monday trading, as of 9:49 a.m. ET, erasing $1.6 billion in market value, even as it reported record third-quarter results.

## A record quarter, a $600 million guide

The [third-quarter release](https://www.globenewswire.com/news-release/2026/11/02/3392999/0/en/tower-semiconductor-reports-third-quarter-record-results-providing-record-fourth-quarter-guidance-resulting-in-2026-2-billion-annual-revenue.html?ref=bullished.co) showed a record $526 million in sales, up 33% from $396 million. Adjusted net profit hit a record $120 million, against $54 million in the year-ago quarter.

Tower's fourth-quarter outlook is [$600 million](https://finance.yahoo.com/markets/stocks/articles/tower-semiconductor-q3-earnings-snapshot-121045954.html?ref=bullished.co), with a 5% band either way. Management said it is closing 2026 at a $2.4 billion annualized revenue run rate, alongside $2 billion in annual revenue.

CEO Russell Ellwanger said the company is entering "[the strongest growth phase in our history.](https://www.globenewswire.com/news-release/2026/11/02/3392999/0/en/tower-semiconductor-reports-third-quarter-record-results-providing-record-fourth-quarter-guidance-resulting-in-2026-2-billion-annual-revenue.html?ref=bullished.co)" His stated target is a [$1.1 billion annualized](https://www.globenewswire.com/news-release/2026/11/02/3392999/0/en/tower-semiconductor-reports-third-quarter-record-results-providing-record-fourth-quarter-guidance-resulting-in-2026-2-billion-annual-revenue.html?ref=bullished.co) silicon photonics run rate.

## A slide from the session high

The stock traded as high as $166.19 in Monday's session, just below the previous close, and weakened as the session went on. It was on pace for a third straight daily decline.

Before Monday, Tower shares were up about 42% year to date as of Friday's close, against about 11% for the S&P 500\. They had still fallen 27% over the prior month and ended last week 48% below their highest close of the past year, set on June 22.

## What Tower makes

Tower is a specialty foundry: it manufactures wafers to customers' designs and sells no chips of its own. Its processes include silicon photonics, silicon-germanium, radio frequency, power management and image sensors.

Customers include fabless chip designers and module integrators for AI and data centers. In 2025, 11% of revenue came from NTCJ and 39% from seven other customers; the United States made up 42% of revenue.

Tower's investor call and webcast was scheduled for 10:00 a.m. ET Monday.

### Sources

- [Tower Semiconductor rises as strong forecast signals record growth phase (TSEM:NASDAQ)](https://seekingalpha.com/news/4662090-tower-semiconductor-rises-as-strong-forecast-signals-record-growth-phase?ref=bullished.co) — seekingalpha.com
- [Tower Semiconductor beats top-line and bottom-line estimates; gives Q4 outlook | Seeking Alpha](https://seekingalpha.com/news/4662058-tower-semiconductor-beats-top-line-and-bottom-line-estimates-gives-q4-outlook?ref=bullished.co) — seekingalpha.com
- [Tower Semiconductor: Q3 Earnings Snapshot](https://finance.yahoo.com/markets/stocks/articles/tower-semiconductor-q3-earnings-snapshot-121045954.html?ref=bullished.co) — Associated Press
- [Tower Semiconductor Reports Third Quarter Record Results,](https://www.globenewswire.com/news-release/2026/11/02/3392999/0/en/tower-semiconductor-reports-third-quarter-record-results-providing-record-fourth-quarter-guidance-resulting-in-2026-2-billion-annual-revenue.html?ref=bullished.co) — globenewswire.com
- [The company's filing (Tower Semiconductor)](https://www.sec.gov/Archives/edgar/data/928876/000117891326004949/exhibit%5F99-1.htm?ref=bullished.co) — SEC filing

### More on Tower Semiconductor

- [Tower Semiconductor Guides Fourth Quarter To $600 Million After Record $526 Million Third Quarter](https://www.bullished.co/tower-semiconductor-guides-fourth-quarter-to-600-million-after-record-526-million-third-1ec6f7e7/)
- [BlackRock Reports 6.8% Passive Stake In Tower Semiconductor, 7.77 Million Shares](https://www.bullished.co/blackrock-reports-6-8-passive-stake-in-tower-semiconductor-7-77-million-shares-cd338369/)
- [Semtech Will Invest In Dedicated SiGe Capacity At Tower Fabs In The U.S., Israel And Japan](https://www.bullished.co/semtech-will-invest-in-dedicated-sige-capacity-at-tower-fabs-in-the-u-s-israel-and-japan-e64efd40/)

[All Tower Semiconductor (TSEM) coverage →](https://www.bullished.co/tag/tsem/)