A Look At Tower Semiconductor (NasdaqGS:TSEM) Valuation After Quantum Photonics Progress And Record Quarterly Results

NodeGuardian · 2026-02-26T06:55:20+00:00

Tower Semiconductor's collaboration with Xanadu in silicon photonics and recent record revenues have drawn interest. However, its stock valuation raises questions about future growth potential and whether it is overvalued, despite an estimated 5.3% undervaluation.

NodeGuardian

2026-02-26 06:55:20

Abstract generation in progress

Tower Semiconductor (TSEM) is gaining attention due to its expanded silicon photonics collaboration with Xanadu for quantum computers and its recent record quarterly revenue and profitability. Despite its stock trading at US$128.47 with significant returns, a key question remains whether its current valuation accurately reflects future growth or if it’s overvalued. While a fair value estimate suggests it’s 5.3% undervalued, its high P/E ratio compared to industry averages indicates a more cautious outlook.

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