Tower Semiconductor has become one of the hottest names in global chip markets, rising about 590% on Wall Street over the past year, from roughly $40 to $278 per share. That gives the analog chipmaker a market value of more than $33 billion, or about NIS 94 billion after accounting for the stronger shekel. The stock has outperformed the SOXX chip index, which climbed 169% over the same period.
This week, Tower also reached a symbolic milestone in Tel Aviv, where its market value passed Bank Hapoalim and may soon overtake Bank Leumi as well. That would make Tower the fourth-most valuable Israeli company, behind Teva Pharmaceutical Industries and Elbit Systems, both dual-listed, and Bank Leumi. The rise is especially striking because Hapoalim was once one of Tower’s largest creditors during a liquidity crisis about 20 years ago.
When Russell Ellwanger became CEO in 2005, Tower was carrying more than $500 million in bank debt after building Fab 2 in Migdal HaEmek. The company was burning about $180 million a year and could not meet its obligations. In 2006 to 2008, the banks agreed to a restructuring that converted 30% of the debt, $158 million, into convertible capital notes, deferred principal payments and lowered long-term interest rates. The Israel Corporation, then Tower’s controlling shareholder, also committed to invest $100 million. Ellwanger later said he told the banks that without restructuring, he would have to hand over the keys to his office.
The convertible notes hung over the stock for years because of dilution fears, but Tower fully repaid its Israeli bank debt in 2016 after issuing bonds. The company was later expected to be sold to Intel for $5.4 billion, but the deal expired in summer 2023 and was canceled. The shares were flat for a while, then began surging from mid-2025, helped by Tower’s growing role in AI, including silicon photonics products for data centers, a solution that improves power efficiency for AI chips and servers, and cooperation with Nvidia.
Ellwanger said in a recent interview that he had promised in 2005 to reach $1 billion in revenue and profitability within 10 years, and that goal was achieved. He now says Tower has significant optical communications market share and that its financial model supports the current valuation, pointing to a 2028 net profit target of $750 million and revenue target of $2.8 billion. Last month, Tower reported strong first-quarter results, with 15% growth year on year, and announced major silicon photonics contracts worth $1.3 billion for 2027. Of six analysts covering the stock, five are positive and one is neutral, with an average target price implying about 13% upside from the Nasdaq level.
