Tower Semiconductor Ltd. (TSEM): one to watch?

No bad news here — just a giveback of a huge AI-driven rally amid a sector-wide foundry selloff, but valuation is still very rich.

👀 WATCH Fundamentals74/100

Fell 20% in 7 trading day(s) — now $211.10

Why TSEM dropped

The drop followed record Q2 2026 results and strong Q3 guidance in early August; the decline is attributed to profit-taking after a sharp rally plus a broader pullback in foundry/semiconductor stocks over AI capex worries, not any company-specific problem.

Fwd P/E 33.1Op margin 19.6%Rev growth 23.7%Debt/equity 4.6%Analyst upside 49.2%

How this scored 74/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 16.9%

✅ Generates cash Free cash flow $167M

✅ Not drowning in debt Debt/equity 4.6% (limit 200%)

✅ Can pay its bills Current ratio 4.9 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 16/25

Operating margin 19.6% 7/9

Net profit margin 16.9% 7/8

Return on equity 10.0% 2/8

Growth Is it getting bigger, or dying? 25/25

Revenue growth 23.7% 9/9

Earnings growth 92.7% 8/8

Expected profit change 157.1% 8/8

Value Is it cheap right now? 8/25

Forward P/E 33.1 2/10

PEG ratio 5.7 0/8

Analyst target upside 49.2% 6/7

Balance sheet Will it survive? 25/25

Debt / equity 4.6% 10/10

Current ratio 4.9 8/8

Free cash flow $167M 7/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-08-25. Research only — not financial advice.