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The Screen · Technology · Semiconductors
Tower Semiconductor Ltd
TSEM · NASDAQ · USD · Market cap $20.3B
Tower Semiconductor Ltd., an independent semiconductor foundry, provides technology, development, and process platforms for integrated circuits in the United States, Japan, rest of Asia, and Europe.
Positioning no disclosures inside 60 days, left as found
Options put/call open interest 4.08, read 2026-11-01
Ethical passes the values gate
Price166.48 USD
Fair value184.85
Ethical score70.0/100
Our investment reviews on this name
2026-10-21Read Distribution209.80-20.6% to today ✓Markup gives way to Distribution after a 10% slide in 3 weeks
2026-10-02Read Markup233.82-28.8% to today Distribution gives way to Markup after a 13% rise in 2 weeks
2026-09-15Read Distribution206.16-19.2% to today ✓Markup gives way to Distribution after a 22% slide in 11 weeks
2026-07-02Read Markup262.92-36.7% to today First review on file: Markup
Our analytic regime reads on this name, dated and marked against the screened price. Small sample per name, and separate from the daily-framework accuracy on the Track Record page.
Tower Semiconductor Ltd holds its Distribution at $166.48. Consolidating, no directional conviction, held for 181 days.
As held on the ledger · 2026-10-30
Phase
Distribution · caution
Quantitative state
Consolidating, no directional conviction, held for 181 days
Price at the screen
$166.48
Valuation
70.65 trailing · 26.64 forward price to earnings
Values screen
PASS· score 70.0
Beta
0.89
The Workings
Five Screens, Shown in Full
Full pass across all five screens. This security clears the Titan Ethical Standard: its business and its balance sheet both stay inside the lines.
Test
Figure
Limit
What it means
Status
Business activity
Permissible
Core business clean
Its core business isn't built on prohibited lines: no gambling, alcohol, tobacco, weapons, or interest-based lending.
Pass
Debt load
4.86%
Below 33%
Interest-bearing debt is just 4.9% of its assets, well under the one-third ceiling: it does not run on borrowed money.
Pass
Interest-bearing cash
27.59%
Below 33%
Cash held in interest-bearing accounts and securities is 27.6% of assets, under the one-third limit.
Pass
Receivables
13.79%
Below 49%
Money owed to the company is 13.8% of assets, under the 49% limit.
Pass
Revenue purity
3.43%
Below 5%
Only 3.4% of revenue comes from non-compliant sources, under the 5% line.
Pass
Five checks adapted from AAOIFI screening standards: business activity plus four balance-sheet ratios. All five must pass for ethical clearance. Every figure is arithmetic on public accounts, not judgement.
The Ethical Read
Why It Clears, in Plain English
Tower Semiconductor clears all five screens. Its business is in a permissible area, its interest-bearing debt is about 5%, inside the ~33% line, and interest is about 3% of its income, under the ~5% line, so it passes.
Read as at 2026-11-01. It updates when the underlying figures move, and past reads are kept below.
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Get an email when TSEM's ethical verdict changes
Today TSEM passes the screen. If new figures move it to a fail, we send you one short email with the before and after. Verdicts change rarely, so you may not hear from us for a long time.
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Fair value range in USD, drawn from the 2026-10-30 screen. The gold marker is the market price at the same screen. A 11.0% margin of safety to the base estimate.
Where our models see it going: fair-value estimate $184.85, with a range of $184.85 to $212.58, dated to the 2026-10-30 screen.
Fair value and rating are our own model estimates; the Street's range reflects third-party analyst estimates. Analysis, not advice.
The Business, in Plain Words
Chip foundry priced far above fair value
Picture a contract chip maker riding the same rollercoaster as memory producers, where orders surge then vanish with every handset cycle. Tower Semiconductor sits at a 40 times forward earnings multiple while our fair value sits 21 percent lower at 184 dollars against the current 234 dollar price. Revenue growth of 16 percent and a 15 percent profit margin look respectable, yet the narrow moat and 9 percent return on equity do not justify paying a premium that leaves no margin of safety.
We therefore pass. The ethical screen clears, but the numbers do not. Analysts may cluster around a 320 dollar target, yet that optimism rests on continued industry expansion that history shows rarely lasts.
The real danger lies in the cyclical trap. Peak earnings often coincide with the highest multiples, and when demand normalises both revenue and margins compress quickly. A narrow moat offers little protection once the upcycle turns. Analysis, not advice.
Another profit measure, before interest, tax and non-cash costs: EBITDA.
The risks · The things to watch: its business and earnings are exposed to Israel and to currency swings; it carries a real debt load, which raises the stakes if revenue slips.
Plain-English interpretation of our own screen data. Analysis, not advice.
Where & How to Trade
TSEM trades on NASDAQ (the company is based in Israel). As a listed security it is accessible through almost any international broker offering its home market. New to this, or investing from abroad? Our guide to accessing global markets covers brokers, currencies and the practical steps.
The Dated Journal · Newest First, Never Edited
Every Entry, As Written
2026-10-28Distribution$178.75-14.8%Entry 9
The analysis reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 14.8% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is holding around 18% above its long-term trend line with momentum reading oversold. Over the past year the shares are up 468%. Our forward projection puts the odds of a 10% gain over the next month near 50%. The street (6 analysts) rates it strong buy, with a mean price target of $314. Since the last review it its composite score rose.
The framework has shifted from markup to distribution since the last review. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 8.3% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is holding around 3% above its long-term trend line with momentum reading bearish. Over the past year the shares are up 468%. Our forward projection puts the odds of a 10% gain over the next month near 50%. The street (6 analysts) rates it strong buy, with a mean price target of $314.
2026-10-14Markup$228.71-2.2%Entry 7
The analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 2.2% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 96% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 468%. Our forward projection puts the odds of a 10% gain over the next month near 50%. The street (6 analysts) rates it strong buy, with a mean price target of $314.
2026-10-02Markup · changed$233.82+13.4%Entry 6
The framework has shifted from distribution to markup since the last review. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved up 13.4% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it B. Technically it is holding around 96% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 468%. Our forward projection puts the odds of a 10% gain over the next month near 50%. The street (6 analysts) rates it strong buy, with a mean price target of $314. Since the last review it dropped out of the Titan Ethical 500.
The framework has shifted from markup to distribution since the last review. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 8.1% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 96% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 468%. Our forward projection puts the odds of a 10% gain over the next month near 50%. The street (6 analysts) rates it strong buy, with a mean price target of $314.
2026-08-15Markup$224.21-14.7%Entry 4
Our analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 14.7% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 96% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 468%. Our forward projection puts the odds of a 10% gain over the next month near 50%. The street (6 analysts) rates it strong buy, with a mean price target of $314.
2026-07-18Markup$262.92+0.0%Entry 3
Our analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 96% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 468%. Our forward projection puts the odds of a 10% gain over the next month near 50%. The street (6 analysts) rates it strong buy, with a mean price target of $314.
2026-07-03Markup$262.92+0.0%Entry 2
Our analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows excellent risk-adjusted returns.
2026-07-02Markup$262.92Entry 1
Our analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows excellent risk-adjusted returns.
Each entry above was written on its date, before the outcome. A journal you can prune is not a journal.
