Key Highlights

  • Shares are trading at $219.97, up 8.79% in Thursday's session.
  • Tower Semiconductor and NewPhotonics announced the start of high-volume shipments of laser-integrated optical engine photonic integrated circuits for AI data-center interconnects.
  • The chips support data rates from 800G to 1.6T today, with 6.4T solutions planned for the first half of 2027.
  • The news comes days after Tower showcased its silicon photonics and SiGe roadmap at the ECOC 2026 conference.

New Photonic Chip Shipments Drive the Rally

Tower Semiconductor (NASDAQ:TSEM) shares surged in Thursday's session after the company and NewPhotonics announced the start of high-volume shipments of laser-integrated, serviceable optical engine photonic integrated circuits built on Tower's PH18DA platform, supporting data rates from 800G to 1.6T for AI data-center interconnects, with 6.4T solutions planned for the first half of 2027.

Announcement Reinforces Tower's AI Optical Networking Footprint

The news reinforces Tower's growing footprint in AI-driven optical networking demand, coming just days after the company showcased its silicon photonics and silicon-germanium technology roadmap at the ECOC 2026 conference in Spain.

Rally Outpaces Broader Semiconductor Gains

The rally has outpaced broader semiconductor and market gains, as investors continue to reward AI infrastructure exposure despite recent sector Volatility tied to AI spending concerns and rising bond yields.

Continued Volume Ramp Will Be the Next Catalyst

Tower Semiconductor shares are climbing as the new photonic chip shipments reinforce its position in the AI optical interconnect market. Continued progress toward the planned 6.4T solutions in 2027, along with broader Demand for AI data-center infrastructure, will likely shape the stock's next move.