Tower Semiconductor (NASDAQ:TSEM) saw its shares increase by 2.42% in pre-market trading Monday after releasing second-quarter results that surpassed analyst expectations, fueled by expansion in its RF infrastructure segment linked to data center and AI growth.
The chip manufacturer reported adjusted earnings of $0.50 per share for Q2, outpacing the $0.43 per share consensus. Revenue reached $372 million, slightly higher than the anticipated $371.26 million, marking a 6% year-over-year increase and a 4% rise compared to the prior quarter.
Looking ahead, Tower projects Q3 revenue of $395 million, within a 5% range, modestly above analyst estimates of $392.5 million. This forecast represents 7% growth year-over-year and 6% sequentially.
“We have reported strong financial results for the second quarter of 2025, demonstrating both quarter-over-quarter and year-over-year revenue growth,” stated Russell Ellwanger, CEO of Tower Semiconductor. “The momentum we have gained in our RF infrastructure business, driven by data centers and AI expansions, is particularly noteworthy, with customer forecasts continuing to increase.”
Gross profit for the quarter rose to $80 million from $73 million in Q1, while net income reached $47 million, equating to $0.42 basic and $0.41 diluted earnings per share, compared to $40 million in the previous quarter.
During the quarter, Tower generated $123 million in operating cash flow and invested $111 million in property and equipment. The company’s strategic moves, including converting several factories to boost RF infrastructure production capacity, are expected to further accelerate growth in future periods.
Tower Semiconductor stock price
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