Tower Semiconductor forecasts $455 million Q2, lands $1.3B AI photonics deals
Tower Semiconductor just forecast second-quarter revenue of $455 million, beating Wall Street's expectations.
The big news? They landed $1.3 billion in silicon photonics chip deals for AI data centers set for 2027, which sent their U.S.-listed shares soaring by over 17% on Wednesday.
CEO Russell Ellwanger says he's feeling good about hitting the company's 2028 goals: $2.8 billion in annual revenue and $750 million net profit.
Tower Semiconductor received $290 million advance payments
With AI data centers booming, demand for Tower's analog chips is way up.
They've already received $290 million in advance payments to lock in production capacity, with more cash expected by early 2027.
First-quarter revenue jumped 15% year-over-year to $414 million, outpacing forecasts, and profits also beat estimates.
GlobalFoundries sues Tower Semiconductor over patents
Even as Tower rides the AI wave, they're dealing with a lawsuit from rival GlobalFoundries over alleged patent infringements related to chip manufacturing.
Still, the company remains upbeat about its growth prospects and future plans.