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The latest update is out from Tower ( (TSEM) ).
On February 25, 2026, Tower Semiconductor and UK-based Salience Labs announced a partnership to manufacture photonic integrated circuit-based optical circuit switches for next-generation AI data centers. The deal uses Tower’s high-volume silicon photonics platforms, including PH18DA with integrated lasers and TPS45PH with low-loss nitride waveguides, moving their joint program from development into a pre-production phase.
By shifting more connectivity and switching into the optical domain, the partners aim to address rising demand for higher bandwidth, lower latency and lower energy per bit in AI back-end networks, a market forecast by Dell’Oro Group to exceed $100 billion in data center switch spending by 2030. The collaboration strengthens Tower’s positioning in AI and data-center infrastructure while giving Salience Labs a scalable manufacturing path, potentially accelerating industrial deployment of optical circuit switching architectures.
The most recent analyst rating on (TSEM) stock is a Buy with a $45000.00 price target. To see the full list of analyst forecasts on Tower stock, see the TSEM Stock Forecast page.
Spark’s Take on TSEM Stock
According to Spark, TipRanks’ AI Analyst, TSEM is a Outperform.
The score is driven mainly by solid financial strength (notably the strong balance sheet) and supportive technical trend, reinforced by an upbeat earnings call focused on a funded, customer-supported SiPho/SiGe capacity ramp. These positives are tempered by premium valuation (high P/E) and the recent dip into negative free cash flow, plus execution/contract risks highlighted on the call.
To see Spark’s full report on TSEM stock, click here.
More about Tower
Tower Semiconductor Ltd. is a leading foundry of high-value analog semiconductor solutions, supplying technology, development, and process platforms across consumer, industrial, automotive, mobile, infrastructure, medical, and aerospace and defense markets. The company offers customizable process platforms including SiGe, BiCMOS, mixed-signal/CMOS, RF CMOS, CMOS image sensors, non-imaging sensors, displays, integrated power management, photonics, and MEMS, supported by multi-fab manufacturing in Israel, the U.S., Japan, and a shared 300mm facility in Italy.
Salience Labs Limited, founded in 2021 and built on research from the University of Oxford and the University of Münster, develops photonic solutions for AI datacenter connectivity. Its photonic switching technologies aim to deliver high-speed, ultra-low latency networking fabrics that alleviate infrastructure bottlenecks created by rapidly expanding AI workloads.
Average Trading Volume: 1,861,756
Technical Sentiment Signal: Buy
Current Market Cap: $14.08B
For a thorough assessment of TSEM stock, go to TipRanks’ Stock Analysis page.