Tower Semiconductor (TSEM) rises after upbeat revenue forecast, $1.3 billion AI chip deals

Tower Semiconductor (TSEM) forecast second-quarter revenue above Wall Street estimates on May 13, 2026, and announced $1.3 billion in silicon photonics deals for 2027 revenue tied to AI data centers. Its U.S.-listed shares rose more than 17% in premarket trading. The Israeli contract chipmaker expects second-quarter revenue of $455 million, above analysts’ average estimate of $436.4 million, according to LSEG. Tower said it received $290 million in customer advance payments to secure production capacity and that customers committed to larger 2028 orders, with additional advance payments due by January 2027. First-quarter revenue rose 15% to $414 million, topping estimates of $411 million. Adjusted profit was 65 cents per share, above expectations of 56 cents. CEO Russell Ellwanger said the company remains confident in its 2028 targets of $2.8 billion in annual revenue and $750 million in net profit. Rival GlobalFoundries sued Tower in March over alleged patent infringement.