Why Tower Semiconductor Rallied in April
Shares of Tower Semiconductor (NASDAQ: TSEM) rallied 26% in April, according to data from S&P Global Market Intelligence.
Tower Semiconductor is a "lagging edge," or specialty Semiconductor manufacturing company, which means it doesn't produce the most leading-edge chips in the world. However, Tower still differentiates itself through intellectual property in important chip types and materials, such as silicon photonics. "SiPho" is seen as the future of AI networking, and Tower Semi's stock has taken off over the past year as a result.
In April, Tower climbed another 26%, even with minimal company-specific news. The company noted a new product partnership to produce chips for the U.S. defense industry, which may have further strengthened Tower's bona fides. Additionally, positive earnings reports from leading chipmakers likely lifted sentiment for Tower as well.
Source Fool.com
