TSMC stock price rises by 6%, hitting a record high; Q4 revenue exceeds expectations

LootboxPhobia · 2026-02-17T09:08:35+00:00

Tower Semiconductor posted a record revenue of $440.2 million in Q4 2025, surpassing expectations, with the stock price rising nearly 6%. The company plans to invest $270 million to expand silicon photonics capacity, with revenue expected to grow 15% in 2026. Meanwhile, Intel's failure to fulfill the 300mm wafer agreement has impacted performance.

LootboxPhobia

2026-02-17 09:08:35

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Israeli Migdal HaEmek - On Wednesday, Tower Semiconductor Ltd. (NASDAQ: TSEM) reported record-breaking revenue for the fourth quarter of 2025, surpassing analyst expectations, driven by strong performance and improved profitability in its silicon photonics business.

Following the earnings release, the professional wafer foundry’s stock rose 5.91% in pre-market trading.

The company’s fourth-quarter revenue reached $440.2 million, exceeding the consensus estimate of $434.2 million, representing a 14% year-over-year increase and an 11% quarter-over-quarter increase. Adjusted earnings per share came in at $0.78, easily surpassing the $0.69 forecast. For the full year 2025, Tower achieved revenue of $1.57 billion, up 9% from $1.44 billion in 2024.

Tower Semiconductor CEO Russell Ellwanger stated, “We closed 2025 with record-high quarterly revenue and significant profit growth. This is thanks to our strong foundation, with each key technology platform growing, along with the outstanding performance and robust incremental profits of our market-leading silicon photonics platform.”

Following the announcement, the company’s stock rose nearly 6%, with investors reacting positively to current performance and Tower’s active expansion plans in the silicon photonics field.

Tower announced an additional investment of $270 million to expand its silicon photonics capacity and capabilities, bringing its total investment in silicon photonics and silicon-germanium to $920 million. The company plans to increase its silicon photonics wafer capacity by more than five times the shipments of Q4 2025 by Q4 2026, with over 70% of the capacity already booked through customer prepayments or in process, with bookings extending to 2028.

For Q1 2026, Tower expects revenue of $412 million, with a variance of plus or minus 5%, representing approximately 15% year-over-year growth.

These results were partly overshadowed by news that Intel announced it would not fulfill the 300mm wafer manufacturing agreement signed in September 2023. The two parties are currently mediating, and Tower is rerouting affected customer processes back to its Fab7 factory in Japan.

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