On May 22, Tower Semiconductor rose 5.09% in regular trading, trading at $278.0/share, with trading volume of $337 million. The rally was driven by continued momentum from multiple analyst upgrades and the company's landmark silicon photonics supply contract.

On the fundamental side, Tower Semiconductor reported Q1 revenue of $414 million, up 15% year-over-year, with net profit surging 62% YoY and silicon photonics revenue tripling. The company secured a $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 to lock in capacity. The customer has committed to even larger wafer orders for 2028.

Multiple institutions have recently raised their target prices, with Wedbush significantly lifting its target from $140 to $300, and CITIC Securities maintaining a buy rating with a $316 target price, providing sustained confidence to the market. The stock had previously pulled back approximately 10% over two trading sessions following a 40%-plus surge, with today's gain suggesting renewed buying interest after profit-taking pressure subsided.

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