Tower Semiconductor Shares Jump After Bank of America Buy Rating

Tower Semiconductor shares rose nearly 9% on August 7, 2026, after Bank of America initiated coverage of the company with a buy rating and a price target of $367. This target represents a 63% upside from the previous day's closing price of $224.70.

Bank of America analysts identified the company as holding a market-leading share in the manufacturing of silicon photonics integrated circuits, which are used in AI data center transceivers. The financial institution projects that revenue from this specific segment will double during 2026.

The stock surge follows the release of Tower Semiconductor's second-quarter 2026 financial results. The company reported record revenue of $460 million, marking a 24% increase year-over-year. Net income also reached a record $91 million, representing a 95% year-over-year increase when excluding non-recurring items.