Silicon Light Boosts AI Networks and Stock Gains

Tower Semiconductor has teamed up with Oriole Networks to bring faster optical switching to AI systems. The new partnership will make it easier to launch nanosecond‑speed light circuits, cutting the delay that AI applications often face. The move comes as experts predict the AI networking market will top $80 billion by 2030, so the company is positioning itself to meet growing demand. Last quarter, Tower’s sales rose 14 % to $440. 21 million, beating analysts’ expectations. Earnings per share also outperformed forecasts, reaching 78 cents versus the projected 68 cents. These results highlight a surge in orders for the company’s light‑based data chips, which help data centers run heavier AI workloads.Investors have responded positively. Tower’s share price is trading above both its 20‑day and 50‑day moving averages, showing short‑term strength. Over the past year, the stock has climbed more than 200 %, moving close to its highest level in a year. Technical indicators suggest mixed momentum: the relative strength index sits around 50, while a negative MACD signals some bearish pressure. Analysts have raised their price targets for the upcoming earnings release, with estimates of 53 cents per share and $409. 06 million in revenue—both higher than last year’s numbers. Despite a premium valuation, many analysts maintain a Buy rating and see upside potential. The company’s Benzinga Edge profile shows strong quality and momentum but a low value score, indicating the stock is priced high relative to peers. Investors are advised to monitor the trend closely and set tight stop‑losses. Tower’s shares closed at $129. 80 in premarket trading, up 4 % from the previous close.