New York, February 7, 2026, 21:37 EST — The market is done for the day.
- Shares of Tower Semiconductor rose 7.7% on Friday to close at $139.04, after touching $141 during the session.
- The shift came just after a fresh collaboration linked to Nvidia’s push into AI data-center networking.
- Next up, investors are watching Tower’s Feb. 11 results for any hints on revenue tied to the photonics business and possible guidance.
Tower Semiconductor finished Friday’s session up 7.7% at $139.04, not far off the day’s $141 high. Shares tacked on another 1% in late trading, reaching $140.50. 1
The clock matters for investors here. Tower enters earnings week with its name popping up around the high-speed wiring at the heart of AI data centers—the links shuttling data between processors.
Money keeps flowing into anything even loosely connected to AI infrastructure, with Wall Street snapping up hardware and networking stocks that can bridge hype and real demand. Tower’s surge landed it back in that mix, for the time being.
Tower on Thursday announced plans to ramp up AI infrastructure using its silicon photonics platform, targeting 1.6T data center optical modules built for Nvidia networking protocols. “We’re proud to deliver advanced, high-speed technologies,” CEO Russell Ellwanger said, highlighting the company’s focus on data-center and AI needs. Nvidia’s networking head, Gilad Shainer, cited “the exponential growth of AI” fueling appetite for faster networks. 2
Silicon photonics moves data with light, not electricity, aiming for higher throughput and lower heat and power usage. The term “1.6T” points to 1.6 terabits per second, the next speed milestone for optical transceivers linking up racks and clusters in today’s data centers.
Chipmakers had a banner session, fueling the rally. Nvidia led the charge as the Dow punched through 50,000 for the first time, driven by bets that major tech firms won’t let up on AI data center investments, according to Reuters. “There’s real demand for AI products,” said Ross Mayfield, investment strategy analyst at Baird, who pointed to the scale of spending needed to meet it. 3
With Tower, traders want more than just headlines—they’re after signs the photonics development actually transitions from “designed for” to large-scale shipments, and ultimately, consistent wafer starts. The company hasn’t shared a timeline or any financial details on its Nvidia-related project.
Tower isn’t chasing the leading edge in logic. The chip foundry has carved out its turf in analog and mixed-signal, banking on process expertise more than the latest nodes. That approach works in photonics, too—here, yield and reliability sometimes outshine transistor density.
Still, the hazards are plain. Silicon photonics projects often drag through lengthy qualification. Brand-name partnerships may not scale—demand can swing, specs get tweaked, and buyers hedge with multiple suppliers. Shares rally hard, then the real test: guidance.
Coming up next, Tower will release its fourth-quarter and full-year 2025 numbers on Wednesday, Feb. 11, followed by first-quarter 2026 guidance. The company’s conference call is on the calendar for 10:00 a.m. Eastern. 4
Investors want to hear about the photonics ramp timeline, its margin impact, and whether data-center demand is still accelerating orders for Tower’s specialty processes.
U.S. markets are closed until Monday, pushing the stock’s next hurdle to the opening bell. After that, attention will swing fast to the Feb. 11 numbers and the call.
