Is Tower Semiconductor (TSEM) Well-Positioned to Benefit from Growth in Silicon Photonic Content Production?

In its third-quarter 2025 capitalist letter, Ave Maria Growth Fund highlighted stocks specified arsenic Tower Semiconductor Ltd. (NASDAQ:TSEM). Headquartered successful Migdal Haemek, Israel, Tower Semiconductor Ltd. (NASDAQ:TSEM) is an autarkic semiconductor foundry. The one-month instrumentality for Tower Semiconductor Ltd. (NASDAQ:TSEM) was -4.68%, and its shares gained 133.25% implicit the past 52 weeks. On January 6, 2026, Tower Semiconductor Ltd. (NASDAQ:TSEM) banal closed astatine $122.28 per share, with a marketplace capitalization of $13.587 billion.

Ave Maria Growth Fund stated the pursuing regarding Tower Semiconductor Ltd. (NASDAQ:TSEM) successful its 3rd 4th 2025 capitalist letter:

"Tower Semiconductor Ltd. (NASDAQ:TSEM) is simply a semiconductor shaper focused connected analog and mixed awesome chips. The institution has 1 of the largest franchises successful the niche country of silicon photonics, which is simply a exertion that uses silicon to modulate airy waves for information transfer. Traditional chip-to-chip information transportation occurs implicit copper wires, but transportation speeds are moving up against the carnal limitations of copper. The lone viable alternate is to transportation information with light, and silicon photonics is proving to beryllium the astir performant and economical option. There is going to beryllium accelerated maturation successful silicon photonic contented produced implicit the coming years and Tower Semiconductor is good positioned to payment from the trend."

Tower Semiconductor Ltd. (NASDAQ:TSEM) is not connected our database of 30 Most Popular Stocks Among Hedge Funds. According to our database, 38 hedge money portfolios held Tower Semiconductor Ltd. (NASDAQ:TSEM) astatine the extremity of the 3rd quarter, up from 28 successful the erstwhile quarter. Tower Semiconductor Ltd. (NASDAQ:TSEM) reported revenue of $396 cardinal successful Q3 2025, resulting successful nett net of $54 million. While we admit the imaginable of Tower Semiconductor Ltd. (NASDAQ:TSEM) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.