TSEM - Intel Wanted to Buy This Stock but Now It's on the Struggle Bus
2023-11-16 10:15:00 ET
It's been a few months since Intel had to terminate its acquisition of contract chip manufacturer Tower Semiconductor (NASDAQ: TSEM) , but Tower is wasting no time charting its path forward. It recently unveiled its long-term financial targets based on new investments it has made to expand its manufacturing capacity. The only problem is Tower and its customers remain in a deep downturn.
As I stated at the end of September, I was anxious to see Tower's first quarterly earnings update before deciding to buy (the first in two years, since Tower stopped reporting during the Intel tie-up talks, as is customary during acquisitions). After seeing the outlook for the final quarter of 2023, it's clear to me Tower is still on the struggle bus, but things might be improving soon.
Tower is a smaller semiconductor contract manufacturer based in Israel. It has lots of customers, especially for analog chips (which interact with a physical world signal, like radio frequencies, electric currents, or magnetic fields) and sensors (lights, sound waves, etc.).
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Intel Wanted to Buy This Stock, but Now It's on the Struggle Bus