Florida-based Hood River Capital Management reported a new position in Tower Semiconductor (TSEM +6.58%) valued at approximately $109.22 million, according to a November 14 SEC filing.
What Happened
Hood River Capital Management established a new position in Tower Semiconductor (TSEM +6.58%), acquiring 1.51 million shares valued at $109.22 million as of September 30, according to its SEC filing dated November 14. The new stake amounts to 1.29% of the fund’s $8.47 billion in reportable U.S. equity assets, raising its total number of holdings to 152 at quarter-end.
What Else to Know
Top holdings after the filing:
- NASDAQ:APLD: $482.81 million (5.7% of AUM)
- NYSE:MTZ: $350.38 million (4.13% of AUM)
- NASDAQ:KTOS: $246.07 million (2.91% of AUM)
- NASDAQ:DAVE: $215.46 million (2.54% of AUM)
- NYSE:FIX: $199.03 million (2.35% of AUM)
As of Wednesday, shares of Tower Semiconductor were priced at $118.08, up a staggering 127% over the past year and well outperforming the S&P 500's 17% gain in the same period.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $1.51 billion |
| Net Income (TTM) | $195.48 million |
| Price (as of Wednesday) | $118.08 |
Company Snapshot
- Tower Semiconductor offers analog-intensive mixed-signal semiconductor devices, including SiGe, BiCMOS, RF CMOS, CMOS image sensors, integrated power management, and MEMS, as well as wafer fabrication and design enablement services.
- It operates as an independent foundry, generating revenue through manufacturing and customizing semiconductor wafers for integrated device manufacturers and fabless companies on a contract basis.
- The company serves a diversified customer base across consumer electronics, communications, automotive, industrial, aerospace, military, and medical device sectors worldwide.
Tower Semiconductor is a leading pure-play foundry specializing in analog and mixed-signal semiconductor manufacturing, with a global footprint and a workforce of over 5,600 employees. The company leverages advanced process technologies and a flexible manufacturing model to address specialized customer requirements in high-growth, high-reliability end markets. Its competitive edge is built on technology customization, deep industry expertise, and broad market reach across multiple geographies and applications.
Foolish Take
This move shows conviction during a staggering stock run. Tower Semiconductor exited the third quarter with momentum across revenue, margins, and capital deployment. Revenue reached $396 million in the third quarter, up 6% sequentially, while net income climbed to $54 million, or $0.48 per share, reflecting operating leverage across its core platforms. Meanwhile, management’s guidance for a record $440 million of revenue in the fourth quarter underscores why some investors are still leaning in despite the stock’s sharp run-up.
What also stands out is where Tower is spending. The company committed an additional $300 million to expand SiPho and SiGe capacity, targeting optical transceivers and data center demand, segments with structurally higher margins and long-duration growth drivers.
And as for the broader context, this fund’s largest holdings skew toward higher-volatility growth names, suggesting Tower is being used as a quality compounder rather than a speculative swing.
Glossary
13F reportable assets: Assets disclosed by institutional investment managers in quarterly SEC filings, covering U.S. equity holdings.
Assets under management (AUM): The total market value of investments managed by a fund or investment firm.
Top holdings: The largest individual investments in a fund's portfolio, typically ranked by market value or portfolio weight.
Trailing twelve months (TTM): The 12-month period ending with the most recent quarterly report.
Pure-play foundry: A semiconductor company that manufactures chips for other companies but does not design its own products.
Analog-intensive mixed-signal: Semiconductor devices combining analog and digital circuits, often used for processing real-world signals.
SiGe: Silicon-germanium, a semiconductor material used to enhance performance in certain electronic devices.
BiCMOS: A technology combining bipolar and CMOS transistors on a single chip for improved speed and power efficiency.
RF CMOS: Radio frequency complementary metal-oxide-semiconductor; technology for integrating radio frequency circuits on standard CMOS chips.
CMOS image sensors: Devices that convert light into electronic signals, widely used in cameras and imaging equipment.
MEMS: Microelectromechanical systems; tiny mechanical devices built onto semiconductor chips for sensing or actuation.
Fabless companies: Firms that design semiconductor chips but outsource manufacturing to foundries rather than owning fabrication facilities.
