Mizuho Securities initiated coverage of Tower Semiconductor on September 25, assigning an Outperform rating and a price target of $300. The firm highlights the company's role in AI optical connectivity as a key growth driver.
Previously, Barclays initiated coverage between September 18 and 21 with an Overweight rating and a price target of $310. Both firms emphasize Tower's leadership in silicon photonics within the AI infrastructure market.
On September 17, Tower started high-volume shipments of laser-integrated photonic integrated circuits created with NewPhotonics. These components currently support data rates of 800G to 1.6T, with plans to reach 6.4T by the first half of 2027.
Tower has secured $1.3 billion in revenue commitments for 2027, supported by $290 million in customer prepayments. In July, the company also announced a multi-billion-dollar expansion of its manufacturing facilities in Japan.
