By Katherine Hamilton

Tower Semiconductor shares rose after the company said it signed more contracts amid rising demand, which is driving revenue growth through 2028.

The stock gained 14% to $251.23 in premarket trading Wednesday. Through Tuesday's close, shares were up 88% this year.

The Israeli analog semiconductor company said it signed silicon photonics contracts with its biggest customers for $1.3 billion in 2027 revenue. The contracts also include the receipt of $290 million in customers' prepayments for capacity reservation.

There is also a larger contractual wafer commitment for 2028. Associated payments are due by January 2027.

Tower said it is facing accelerating demand and ramping its silicon photonics capacity.

It expects to hit $2.8 billion in revenue in 2028, with $750 million in profit.

Separately, Tower said first-quarter revenue increased 15% to $413.6 million. Profit rose to $65 million, or 57 cents a share, up from $40 million, or 35 cents a share, the year before.

It expects revenue in the second quarter will be $455 million at the midpoint, which would be a 22% increase from the prior year.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

May 13, 2026 07:43 ET (11:43 GMT)

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