AI Data Center Beneficiary Expectations Surge Market Cap by $1.6 Billion in One Day

Tower Semiconductor Ltd. (NASDAQ: TSEM) shares closed at $190.33 on the 25th, up 5.26%. With more than 4.12 million shares traded, its market capitalization climbed to about $21.2 billion (roughly KRW 30 trillion), marking a one-day increase of around $1.1 billion (approximately KRW 1.6 trillion).

On February 5, Tower Semiconductor announced it would expand its silicon photonics platform for 1.6-terabit optical modules tailored to AI data centers in collaboration with Nvidia, sparking expectations that it will benefit from rising AI infrastructure investments. Earlier in 2024, the company began mass production of 1.6 Tbps silicon photonics transceivers, demonstrating its technology leadership in next-generation high-speed optical communications.

As a foundry specializing in analog, power, image sensors and photonics, Tower Semiconductor operates manufacturing sites in Israel, the United States, Japan and Italy, and boasts particular strengths in RF and power semiconductors as well as silicon photonics.