Tower Semiconductor Stock Plunges 8%, Wiping Out $1.6 Billion, Despite Record Quarter
The specialty chipmaker posted record third-quarter sales of $526 million and guided the fourth quarter to $600 million.
Tower Semiconductor, a specialty chip foundry, saw its shares fall 8.42% to $152.47 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 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, 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." His stated target is a $1.1 billion annualized 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) — seekingalpha.com
- Tower Semiconductor beats top-line and bottom-line estimates; gives Q4 outlook | Seeking Alpha — seekingalpha.com
- Tower Semiconductor: Q3 Earnings Snapshot — Associated Press
- Tower Semiconductor Reports Third Quarter Record Results, — globenewswire.com
- The company's filing (Tower Semiconductor) — SEC filing
