Key insights
- The post highlights Tower Semiconductor (TSEM) as a key player in AI photonics manufacturing, suggesting a significant growth potential due to its unique SiPho PDK and partnerships with major players like NVIDIA. The limited float and strong Q1 earnings growth could drive a substantial re-rating of the stock. This could positively influence US semiconductor stocks, particularly those involved in AI and photonics.
Tsem owns the only production SiPho PDK on earth. LITE, COHR, AAOI, Broadcom, Marvell — they all come to Tower to fab their photonics chips because literally no one else can make them.
LITE (the customer): $55B market cap.
TSEM (the foundry everyone depends on): $19B.
The float is the real play. 112M shares on $19B. Dual-listed with 25% locked in foreign pensions that never sell on US drawdowns. Real tradable float: ~35M shares.
Friday proof: sector down 8-14%. TSEM down 1.48% on 3x volume. The structural floor is real.
Now flip it. Q1 earnings in may. SiPho growing 70% YoY. NVIDIA partnership. $650M to triple capacity. Near zero analyst coverage.
When buying hits 35M tradable shares with no supply, the re-rate is violent.
Not financial advice. Float math doesn’t lie.