New York, Jan 17, 2026, 8:46 PM EST — Market closed
- Tower Semiconductor jumped 4.7% Friday, closing at $129.83, and was hovering around $131 in after-hours trading.
- Chip stocks climbed ahead of the long weekend, buoyed by strong signs of AI-driven demand and spending intentions.
- Attention turns to Tuesday’s reopening and remarks from Tower executives at their late-January investor event.
Tower Semiconductor Ltd shares climbed 4.7% on Friday, closing at $129.83 and sending the Israel-based contract chipmaker into the long weekend on a strong note. After-hours trading saw the stock tick up further to $131.13. 1
This shift is crucial as semiconductors are once again driving the market, with investors flocking to plays linked to data centers and AI hardware. Tower rides that wave, despite not producing the most cutting-edge logic chips.
U.S. markets are closed Monday, setting up Tuesday’s open as the first real test to see if buyers hold their ground or start trimming risk after a quick rally in chip stocks.
Chip stocks climbed Friday while the broader U.S. market barely budged, with the Philadelphia semiconductor index rising 1.2%. Reuters noted the markets face a long weekend ahead and highlighted Intel as a key earnings report coming up as the season heats up. 2
The boost partly stems from Taiwan Semiconductor Manufacturing Co, the globe’s largest contract chipmaker, which unveiled a significant jump in capital spending. TSMC CEO C.C. Wei said he felt “quite satisfied” after gauging demand not only from Nvidia but also from cloud operators further along the supply chain, Reuters Breakingviews reported. 3
Tower’s focus right now is on positioning. Earlier this month, the company announced a partnership with LightIC Technologies to develop silicon photonics — a technology that uses light rather than electricity to transmit data — aimed at frequency-modulated continuous-wave (FMCW) LiDAR sensors for automotive and robotics sectors. “We are excited to expand our silicon photonics market beyond that of AI infrastructure into new sensing applications,” said Tower executive Ed Preisler in a statement. 4
Tower’s focus isn’t on the latest process nodes but on specialty manufacturing—chips that find their way into long-life industrial and automotive products, as well as communications equipment. This approach tends to smooth out revenue compared to the volatile chip market, though daily stock moves often hinge on sentiment.
Traders are focused on one clear thing: will the chip demand stay firm once liquidity picks up after the holiday? And will earnings talk suggest any slowdown in orders? Tower, as a foundry, makes chips for other firms, so the market closely watches any signs of factory “utilization”—the share of its capacity actually in use.
But there’s a clear risk here. The spending surge that’s pumping up the market could backfire if demand fades, flooding the market with supply. Smaller stocks could take a sharp hit when sentiment shifts. And with trading volumes low over the holidays, those moves can get even more exaggerated.
When trading kicks off Tuesday, eyes will be glued to semiconductors for signs of momentum and clues from early earnings on IT budgets and data-center demand. Even a quiet tape can shift quickly in this sector.
Tower is set to take the stage at the Susquehanna 15th Annual Technology Conference on Jan. 26. This event typically draws focus to management’s remarks on demand and pricing. 5
