KryptonResearch14
Sep 25, 6:48 PM
$TSEM
Mizuho initiated coverage this morning with an Outperform and a
$300 target. The thesis: Tower is the leading, fastest-growing foundry for silicon photonics chips, the components inside the optical transceivers moving data between servers in AI data centers.
As bandwidth moves from 800G toward 1.6T and 6.4T, optical connectivity keeps getting more important. Mizuho puts the silicon photonics transceiver market at
$8.5B by FY2029, roughly a 60% annual growth rate.
The sell side has arrived in a wave. Barclays assumed coverage at Overweight (
$310) last week; BofA initiated at Buy (
$367) in August. The average target is about
$314 (Koyfin), with 7 of 8 analysts at Buy or Strong Buy.
Shares were up ~6% to ~
$231 this afternoon, and are up ~88% YTD.
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