Tower Semi forecasts upbeat quarterly revenue, signs $1.3 billion in AI chip deals

Tower Semiconductor forecast second-quarter revenue above estimates and disclosed $1.3 billion in 2027 supply deals tied to high-speed optical chips for AI data centers. The guidance beat and sizable long-dated backlog signal improving demand visibility and stronger growth prospects. The news is positive for the stock and reinforces exposure to AI infrastructure spending.

Analysis

Tower Semiconductor forecast second-quarter revenue above estimates and disclosed $1.3 billion in 2027 supply deals tied to high-speed optical chips for AI data centers. The guidance beat and sizable long-dated backlog signal improving demand visibility and stronger growth prospects. The news is positive for the stock and reinforces exposure to AI infrastructure spending.