Tower Semiconductor's stock soared 5.10% intraday, driven by positive analyst sentiment and a major supply contract.

The rally follows multiple institutional target price upgrades, including Wedbush significantly raising its target from $140 to $300, and CITIC Securities maintaining a buy rating with a $316 target price. Additionally, the company secured a landmark $1.3 billion long-term silicon photonics wafer supply contract for AI data center high-speed data transmission, with $290 million in prepayments already received.

Strong first-quarter results also supported the move, with revenue up 15% year-over-year to $414 million, net profit surging 62%, and silicon photonics revenue tripling. The stock's gain indicates renewed buying interest after a recent pullback.