Tower Semiconductor (TSEM) Soars to 25-Year High on New Deal to Bolster AI

Tower Semiconductor Ltd. (NASDAQ:TSEM) is one of the 10 Stocks Dominating Today’s Market Action.

Tower Semiconductor soared to a nearly 25-year high on Thursday, following news that it teamed up with Oriole Networks to develop AI infrastructure products in line with the aim to tap an expected $80-billion total addressable market.

At intra-day trading, Tower Semiconductor Ltd. (NASDAQ:TSEM)  jumped to its highest price of $166.44 before paring gains to finish the session just up by 16.99 percent at $166.08 apiece. The last time the stock touched the said level was in July 2001.

In a statement, Tower Semiconductor Ltd. (NASDAQ:TSEM) said that it partnered with Oriole Networks to deliver ultra-low, deterministic-latency networking for scale-up and scale-out AI architectures, built on Tower’s mature silicon photonics platform.

Tower Semiconductor (TSEM) Soars to 25-Year High on New Deal to Bolster AI

“As AI models continue to scale, requiring increasingly large clusters of processors, achieving high-radix networks with massive bandwidth and low latency becomes increasingly challenging. Leveraging Tower’s advanced silicon photonics platform, Oriole’s edge-switching architecture enables nanosecond optical circuit switching and a passive network core designed to deliver low and predictable tail latency with improved resiliency,” they said.

Ed Preisler, general manager of Tower Semiconductor Ltd.’s (NASDAQ:TSEM) RF Business Unit, said that the company’s partnership with Oriole “is a key step toward bringing AI back-end networking to market that can scale clusters and break through today’s latency wall.”

While we acknowledge the risk and potential of TSEM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TSEM and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.

Disclosure: None. Follow Insider Monkey on Google News.