Tower Semiconductor has emerged as Israel’s third most valuable publicly traded company, following a notable increase in its share price over the past week. The company is currently valued at $18.4 billion, placing it ahead of Check Point Software Technologies and only trailing behind Teva Pharmaceutical Industries and Elbit Systems.
This significant milestone is attributed to a sustained rally in Tower’s stock, which has risen nearly 35% since the beginning of 2026 and has experienced an impressive increase of more than 316% over the past year. This current valuation is more than three times the $5.4 billion that Intel had previously agreed to pay to acquire the company in 2023, a deal that ultimately fell through.
The surge in share prices is reflective of Tower’s steady financial performance over the past year. In the fourth quarter of 2025, the company reported revenue of $440 million, marking a 14% increase compared to the same period a year prior. Additionally, gross profit rose by 27% to reach $118 million, while operating profit saw a substantial increase of 39% to $71 million. Net profit for this quarter reached $80 million, a remarkable 48% year-on-year growth.
For the full year, Tower’s revenue grew by 9% to $1.6 billion, with net profit also rising by 6% to $220 million. The company has expressed optimism regarding future growth, projecting first-quarter revenue for 2026 to be approximately $412 million, which represents a 15% increase compared to the same period last year.
In addition to its financial achievements, Tower has outlined substantial investment plans. The company had previously announced capital expenditure of $650 million and has allocated an additional $270 million to enhance its infrastructure for silicon photonics production.
Moreover, Tower has entered into a collaboration with Nvidia to supply silicon photonics components, thereby linking its growth strategy to the increasing demand for data infrastructure. This strategic partnership could position Tower favourably within a rapidly evolving market.
On a related note, it was disclosed last month that Intel intends to withdraw from a 2023 agreement that would have seen the company manufacture wafers for its customers in New Mexico. This contract had envisioned Tower investing $300 million in equipment for Intel’s Rio Rancho site, which would have secured the capacity to produce more than 600,000 photo layers per month to support next-generation 300-mm chips.