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MIGDAL HAEMEK, Israel - On Monday, Tower Semiconductor (NASDAQ:TSEM) reported second-quarter earnings that exceeded analyst expectations, driven by growth in its RF infrastructure business tied to data centers and AI expansion.
The chipmaker’s shares rose 2.42% in pre-market trading after the quarterly release.
The semiconductor manufacturer posted adjusted earnings of $0.50 per share for the second quarter, surpassing the analyst estimate of $0.43. Revenue reached $372 million, slightly above the consensus estimate of $371.26 million and representing a 6% increase YoY and 4% growth quarter-over-quarter.
Tower’s guidance for the third quarter projects revenue of $395 million (with a 5% range), which falls slightly above analyst expectations of $392.5 million. This forecast represents a 7% YoY increase and 6% sequential growth.
"We have reported strong financial results for the second quarter of 2025, demonstrating both quarter-over-quarter and year-over-year revenue growth," said 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."
The company’s gross profit for the quarter was $80 million, up from $73 million in the previous quarter. Net profit reached $47 million, translating to $0.42 basic and $0.41 diluted earnings per share, compared to $40 million in the first quarter.
Tower generated $123 million in operating cash flow during the quarter while investing $111 million in property and equipment. The company’s strategic initiatives, including repurposing multiple factories for higher RF infrastructure capacity, are expected to contribute more strongly to growth in upcoming quarters.
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