Tower Semiconductor Ltd.

Tower Semiconductor Ltd. (NASDAQ: TSEM) is a semiconductor manufacturer that is a pure-play specialty foundry. It concentrates on making integrated circuits (ICs) based on customer design specifications as a pure-play foundry. Integrated circuits from the firm are used in many goods and markets, including consumer electronics, personal computers, communications, automotive, industrial, and medical device products.

Key Highlights

• The company reported a 19.16% rise in revenues to USD 1.51 billion in FY21 (ended December 31, 2021) from USD 1.27 billion in FY20.
• The company reported a sharp uptick in the bottom line to USD 154.08 million in FY21 from USD 83.29 million in FY20.
• On February 15, 2022, TSEM and Intel Corporation announced a definitive deal under which Intel will purchase TSEM for USD 53 per share in cash, for a total enterprise value of USD 5.4 billion.
• Stock is currently trading far above its crucial long-term as well as short-term 50-day and 200-day SMA support levels, and its RSI is at 71.60, indicating an overbought zone.
• Stock is currently leaning towards the higher-band of the 52-week range of USD 24.81 to USD 47.50.
• TSEM's stock price has surged 33.09% and 70.67% in the past week and six months, respectively.

Three-Year Technical Price Chart (as of February 17, 2022). Analysis by Kalkine Group

Conclusion: Considering the company's robust growth prospects, acquisition concerns, bleak outlook, global chip shortage, and other technical indicators, we recommend a "Watch" rating on the stock at the closing price of USD 46.90, down 0.78% as of February 17, 2022.

*The reference data in this report has been partly sourced from REFINITIV.