Tower Semiconductor slides 6.4% as investors digest recent silicon photonics-driven run-up

Tower Semiconductor (TSEM) is down 6.4% today. Here is some analysis on what might have caused this price movement.

Analysis: The move appears more consistent with a post-rally pullback than a fresh, company-specific negative catalyst. After multiple upbeat silicon photonics announcements over the past month, traders may be taking profits amid broader volatility in semiconductor stocks.

Details:

Tower previously highlighted strong momentum in silicon photonics, including signed customer contracts tied to $1.3 billion of expected 2027 revenue and $290 million of customer prepayments for capacity reservation.

In its Q1 2026 results, Tower reported $414 million in revenue and guided Q2 2026 revenue to $455 million (±5%), which it described as a company record and part of a plan for sequential growth through 2026.

A new multi-year supply agreement with IQE was announced for Indium Phosphide (InP) epiwafers used in optical connectivity for AI-driven data center infrastructure, including commitments around volumes/purchases.

The IQE agreement also settles prior IP disputes between the companies via a worldwide, royalty-free license arrangement related to porous silicon patents.

Sources:

GlobeNewswire, Tower Semiconductor Investor Relations

Disclaimer: This price movement analysis was generated with the help of AI. Please double-check the information provided for mistakes.

$TSEM Hedge Fund Activity

We have seen 205 institutional investors add shares of $TSEM stock to their portfolio, and 195 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

PRICE T ROWE ASSOCIATES INC /MD/ added 2,673,246 shares (+57.1%) to their portfolio in Q1 2026, for an estimated $469,101,208
GOLDMAN SACHS GROUP INC removed 1,798,515 shares (-81.5%) from their portfolio in Q1 2026, for an estimated $315,603,412
SENVEST MANAGEMENT, LLC removed 1,699,577 shares (-42.8%) from their portfolio in Q1 2026, for an estimated $298,241,771
POINT72 ASSET MANAGEMENT, L.P. removed 1,613,540 shares (-100.0%) from their portfolio in Q1 2026, for an estimated $283,143,999
CAPITAL WORLD INVESTORS added 1,326,761 shares (+inf%) to their portfolio in Q1 2026, for an estimated $232,820,020
CAPITAL INTERNATIONAL INVESTORS removed 1,322,862 shares (-69.8%) from their portfolio in Q1 2026, for an estimated $232,135,823
VICTORY CAPITAL MANAGEMENT INC removed 1,212,285 shares (-85.6%) from their portfolio in Q4 2025, for an estimated $142,346,504

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard. You can access data on hedge funds moves and 13F filings through the Quiver Quantitative API 13F endpoint.

$TSEM Analyst Ratings

Wall Street analysts have issued reports on $TSEM in the last several months. We have seen 1 firms issue buy ratings on the stock, and 0 firms issue sell ratings.

Here are some recent analyst ratings:

Benchmark issued a "Buy" rating on 02/12/2026

To track analyst ratings and price targets for $TSEM, check out Quiver Quantitative's $TSEM forecast page.

$TSEM Price Targets

Multiple analysts have issued price targets for $TSEM recently. We have seen 4 analysts offer price targets for $TSEM in the last 6 months, with a median target of $315.0.

Here are some recent targets:

Cody Acree from Benchmark set a target price of $335.0 on 05/14/2026
Medhi Hosseini from Susquehanna set a target price of $330.0 on 05/14/2026
Matt Bryson from Wedbush set a target price of $300.0 on 05/14/2026
Tavy Rosner from Barclays set a target price of $142.0 on 02/13/2026

This article is not financial advice. See Quiver Quantitative's disclaimers for more information. Note that there may be inaccuracies due to mistakes in ticker-mapping, and other anomalies.