Barclays initiated coverage on Tower Semiconductor with an Overweight rating. The bank established a price target of $310 for the stock. Analysts highlight the company’s position as a premier silicon photonics foundry.
Tower is positioned to capture rising demand for optical connectivity in AI and data centers. Barclays projects silicon photonics will account for 62% of company revenue by 2028. The firm identifies this as one of the fastest-growing semiconductor markets.
The company has secured $1.3 billion in contractually committed revenue for 2027. Customer prepayments currently support this backlog with approximately $300 million. BofA Securities and Benchmark also maintain bullish outlooks on the company’s AI infrastructure growth.