Stock Track | Tower Semiconductor Plummets 5.13% Intraday Amid Intel Contract Dispute Despite Strong Earnings

Stock Track
Feb 12

Tower Semiconductor's stock experienced a sharp intraday decline of 5.13% on Wednesday, contrasting with its earlier pre-market gains following the release of its fourth-quarter results.

The semiconductor foundry reported record quarterly revenue that slightly beat analyst expectations, alongside earnings per share that surpassed estimates. The company also provided first-quarter revenue guidance above consensus and announced significant capital expenditure plans for capacity expansion.

However, the stock's downturn appears linked to a disclosure in the company's earnings release regarding a contract dispute with Intel. Tower Semiconductor revealed that Intel has recently expressed its intention not to perform under a September 2023 agreement to manufacture 300mm wafers for Tower's customers at Intel's New Mexico facility. The parties are currently engaged in a mediation process to resolve the dispute, creating uncertainty around this strategic manufacturing capacity.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10