From all-time high to a 40% crash: Tower Semiconductor sucked into the chip whirlwind ahead of earnings
Tower Semiconductor's stock has lost 41.8% from its June peak, trading at a market cap of $18.9 billion amid negative sentiment in the chip market. The company will release its Q3 earnings tomorrow, with analysts expecting 32% revenue growth. Lemonade hits a year-low, and Silicom erases a quarter of its value despite positive results.
Tower Semiconductor's stock has lost 41.8% of its value since the June peak, now trading at a market cap of $18.9 billion, about $14 billion below the peak. The sharp decline, including an 11.4% drop last Friday, occurs amid negative sentiment in the chip market, led by a 28.6% plunge in Intel. Tower, led by CEO Russell Ellwanger, will report Q3 earnings tomorrow (Monday), with analysts expecting approximately 32% revenue growth to $522 million and nearly doubling earnings per share to $1.07. The previous quarter ended with record sales and exceeded forecasts. Ten analysts rate Tower positively, one neutral, with an average target price reflecting an 88% premium. Lemonade has dropped 50% since the start of the year, closing at a year-low with a $3.3 billion market cap, ahead of its Thursday earnings. Silicom erased nearly a quarter of its value in two days after reporting positive results: 71.1% revenue growth to $26.7 million, an 87.8% reduction in net loss, and a return to non-GAAP net profit. The company raised its annual revenue guidance to $96-98 million.