AI Foundry Plummets, 2 Trillion Won Vanishes in a Day

Tower Semiconductor Ltd. (Nasdaq: TSEM), an Israeli foundry, closed down 5.12% at $229.65 on the Nasdaq on the 8th (local time). Trading volume reached 2.36 million shares, slightly above its 20-day average, and market capitalization fell to about $25.6 billion, erasing roughly $1.25 billion in shareholder value in a single day.

In its first-quarter results, the company reported earnings per share of $1.89, beating market expectations, as robust demand for analog chips in data centers and AI infrastructure drove performance. Analysts remain bullish, maintaining a “Strong Buy” consensus with an average price target of $313.83, and many view the recent pullback as a buying opportunity.

Tower Semiconductor is an independent foundry specializing in analog and mixed-signal semiconductors, with manufacturing sites in the U.S., Israel, Japan and Italy. After Intel’s $5.4 billion takeover bid in 2022 failed to secure Chinese regulatory approval in 2023, the two companies instead signed a foundry services agreement for production at Intel’s U.S. facilities, continuing their collaboration.