On July 27, Tower Semiconductor rose 5.74% overnight, trading at $246.94/share, with turnover of $1.41 million. The stock outperformed the broader semiconductor sector, which saw widespread gains.

The move comes as investor sentiment remains buoyed by the company's recently announced strategic capacity expansion in Japan. Tower Semiconductor is investing approximately $3 billion to significantly scale its 300mm silicon photonics, silicon germanium, and advanced packaging capabilities, supported by a $1 billion grant from the Japanese government. The first phase is expected to be fully operational by Q4 2027. In connection with this expansion, the company raised its 2028 financial targets to $3.6 billion in revenue and $1.2 billion in net profit, up from the prior targets of $2.8 billion and $750 million respectively. Wedbush has also highlighted the stock as undervalued, citing silicon photonics expansion as a key driver of AI infrastructure growth. The company is scheduled to report Q2 results on August 4.

Within the Semiconductors sector, Micron Technology rose 3.83%, Advanced Micro Devices rose 2.98%, Intel rose 2.87%, Broadcom rose 2.2%, and NVIDIA rose 1.17%.

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