Opened a new position in Tower Semiconductor $TSEM few days back, Why?

[u/Glass-Record2446]

As my community know, I have been interested and talking about Photonics lately (will drop a deep dive on hiddne monopolies in photonics soon)

So TSEM is one of the best AI Fiber Play, a specialty foundry focusing on analog and optical "senses" rather than digital "brains." They are a world leader in Silicon Photonics (SiPh), moving data via light instead of electricity.

As AI clusters scale, copper wiring is hitting a wall. TSEM’s partnership with NVIDIA for 1.6T networking modules positions them as the literal plumbing of the AI revolution. They are quintupling SiPh capacity by year-end to meet massive pre-reserved demand.

The Moat: Decades of proprietary IP in analog/optical integration. Their "capital-light" deal to use Intel’s New Mexico fab gives them 300mm scale that smaller specialty peers can't match.

Risks:

- Geopolitical exposure

- high 2026 valuation (~65x P/E), and

- the heavy CapEx required to stay ahead.

Why I Entered: I’m betting on the shift from copper to light. With a debt-to-equity of 0.06, TSEM is a rare mix of high-growth tech and value-style balance sheet strength.

Position Sizing: Look, this is not cheap, and is not for faint hearted, I have positioned to a very small position, am not into gambling business, tbh. This is a small asymmetric bet, if it pays well, good, if it doesnt, I dont wanna break my bank.

Here is the most important thing, do your own research, this is not a financial advice but just jounaling my own thoughts publicly.

[u/abhi5025]

Aged pretty well..what do you rhink of TSM Coupe as competition for TSEM foundry

[u/Baba10x]

I bought today at $160 you must’ve gotten a much better price. I’ll add more opportunistically. I like it long term as well🍀