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The Screen · Technology · Semiconductors
Tower Semiconductor Ltd
TSEM · NASDAQ · USD · Market cap $23.3B
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.
Screened 2026-09-03 · the tape above runs as of 11:00 UTC · two dates, stated on purpose · verdict and workings shown in full · never trimmed
The Label · The Season, Not the Day
This name holds its distribution label.
Tower Semiconductor Ltd holds its Distribution at $206.16. Consolidating, no directional conviction, held for 84 days.
As held on the ledger · 2026-09-03
Phase
Distribution · caution
Quantitative state
Consolidating, no directional conviction, held for 84 days
Price at the screen
$206.16
Valuation
81.81 trailing · 31.61 forward price to earnings
Values screen
PASS· score 70.0
Beta
0.90
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.
Fair value range in USD, drawn from the 2026-09-03 screen. The gold marker is the market price at the same screen. The price runs 8.9% above the base estimate.
Third-party analyst targets: 8 covering, consensus Strong Buy. The average target sits +55% from the screen price.
Reading the gap · Our more conservative model reads it as fully-to-richly valued here, while the Street is more bullish: a quality-at-a-fair-price name rather than a deep-value one.
Price History & Projections
Where it has been, where the models see it going. History from market close data; projection points are our fair-value estimates and third-party analyst targets, dated to the 2026-09-03 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.
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 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
The framework 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
The framework 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
The framework 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
The framework 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.
