Sifting through countless of stocks in the Semiconductors & Semiconductor Equipment industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in Semtech Corporation or Tower Semiconductor Ltd. because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how Semtech Corporation and Tower Semiconductor Ltd. compare based on key financial metrics to determine which better meets your investment needs.

About Semtech Corporation and Tower Semiconductor Ltd.

Semtech Corporation provides semiconductor, Internet of Things systems, and cloud connectivity service solutions in the Asia- Pacific, North America, and Europe. The company operates in three segments: Signal Integrity, Analog Mixed Signal and Wireless, and IoT Systems and Connectivity. It provides signal integrity products, including a portfolio of optical and copper data communications and video transport products used in various infrastructure, and industrial applications; a portfolio of integrated circuits for data centers, enterprise networks, passive optical networks, wireless base station optical transceivers, and interface applications; and video products for broadcast applications, as well as video-over-IP technology for professional audio video applications. The company also offers analog mixed signal and wireless products; protection devices, such as filter and termination devices which protect electronic systems from voltage spikes; and designs, develops, manufactures, and markets radio frequency products used in industrial, medical, and communications applications, as well as specialized sensing products. In addition, it provides switching voltage regulators, combination switching and linear regulators, smart regulators, isolated switches, and wireless charging related products. Further, the company offers a portfolio of IoT systems and connectivity solutions, such as modules, gateways, routers, and connected services, including wireless connectivity and cloud-based services for industrial, medical, and communications applications. It serves original equipment manufacturers, solution providers, commercial applications, infrastructure, high-end consumer, and industrial end markets. The company sells its products through direct sales personnel, independent sales representative firms, and independent distributors. Semtech Corporation was incorporated in 1960 and is headquartered in Camarillo, California.

Tower Semiconductor Ltd., an independent semiconductor foundry, provides technology, development, and process platforms for integrated circuits in the United States, Japan, rest of Asia, and Europe. The company provides customizable process technologies, including SiGe, SiPho, mixed signal CMOS, RF CMOS, CMOS image sensor, non-imaging sensors, wafers, and integrated power management. It also offers a design enablement platform for a design cycle, as well as transfer optimization and development process services to integrated device manufacturers and fabless companies. The company serves consumer applications, personal computers, communications, handsets and smartphones, automotive, industrial, aerospace, and medical devices. Tower Semiconductor Ltd. was incorporated in 1993 and is headquartered in Migdal Haemek, Israel

Latest Semiconductors & Semiconductor Equipment and Semtech Corporation, Tower Semiconductor Ltd. Stock News

As of September 2, 2026, Semtech Corporation had a $12.5 billion market capitalization, compared to the Semiconductors & Semiconductor Equipment median of $4.7 million. Semtech Corporation’s stock is up 81.6% in 2026, down 4.9% in the previous five trading days and up 131.74% in the past year.

Currently, Semtech Corporation’s price-earnings ratio is 82.4. Semtech Corporation’s trailing 12-month revenue is $1.2 billion with a 13.1% net profit margin. Year-over-year quarterly sales growth most recently was 32.7%. Analysts expect adjusted earnings to reach $3.474 per share for the current fiscal year. Semtech Corporation does not currently pay a dividend.

As of September 2, 2026, Tower Semiconductor Ltd. had a $23.4 billion market cap, putting it in the 87th percentile of all stocks. Tower Semiconductor Ltd.’s stock is up 76.1% in 2026, down 6.5% in the previous five trading days and up 240.65% in the past year.

Currently, Tower Semiconductor Ltd.’s price-earnings ratio is 81.8. Tower Semiconductor Ltd.’s trailing 12-month revenue is $1.7 billion with a 16.9% net profit margin. Year-over-year quarterly sales growth most recently was 31.0%. Analysts expect adjusted earnings to reach $3.862 per share for the current fiscal year. Tower Semiconductor Ltd. does not currently pay a dividend.

How We Compare Semtech Corporation and Tower Semiconductor Ltd. Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at Semtech Corporation and Tower Semiconductor Ltd.’s stock grades to see how they measure up against one another.

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Semtech Corporation and Tower Semiconductor Ltd. Growth Grades

Company	Ticker	Growth
Semtech Corporation	SMTC	C
Tower Semiconductor Ltd.	TSEM	B

The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.

In order to compute the growth score and assign it a letter grade, the percentile ranks for each of three components‐consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.

The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered to be very weak, while those in the top 20% receive A grades, which are considered very strong.

Semtech Corporation has a Growth Score of 60, which is Average. Tower Semiconductor Ltd. has a Growth Score of 73, which is Strong.

The Growth Grade Winner: Tower Semiconductor Ltd.

As you can clearly see from the Growth Grade breakdown above, Tower Semiconductor Ltd. has a more attractive growth grade than Semtech Corporation. For investors who focus solely on how a company is growing relative to other companies in the same industry, Tower Semiconductor Ltd. could be a good stock to add to their portfolio. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Semtech Corporation and Tower Semiconductor Ltd.’s Momentum Grades

Company	Ticker	Momentum
Semtech Corporation	SMTC	A
Tower Semiconductor Ltd.	TSEM	A

Momentum grades help to uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

Semtech Corporation has a Momentum Score of 87, which is Very Strong. Tower Semiconductor Ltd. has a Momentum Score of 95, which is Very Strong.

The Momentum Grade Winner: It’s a Tie!

Looking at the Momentum Grade breakdown above, both Semtech Corporation and Tower Semiconductor Ltd. have a grade of A. For those who focus solely on a company’s momentum, further research will need to be conducted into both companies to see if they fit your individual needs as an investor.

Semtech Corporation and Tower Semiconductor Ltd.’s Estimate Revisions Grades

Company	Ticker	Earnings Estimate
Semtech Corporation	SMTC	A
Tower Semiconductor Ltd.	TSEM	A

Earnings estimate revisions scores consider the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. Estimate revisions are based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.

Semtech Corporation has a Earnings Estimate Score of 95, which is Very Positive. Tower Semiconductor Ltd. has a Earnings Estimate Score of 88, which is Very Positive.

The Earnings Estimate Revisions Grade Winner: It’s a Tie!

Looking at the Earnings Estimate Revisions Grade breakdown above, both Semtech Corporation and Tower Semiconductor Ltd. have a grade of A. For those focusing solely on a company’s estimate revisions, other financial metrics will need to be evaluated to determine whether Semtech Corporation or Tower Semiconductor Ltd. is a better fit.

Other Semtech Corporation and Tower Semiconductor Ltd. Grades

In addition to Momentum, Growth and Estimate Revisions, A+ Investor also provides grades for Value and Quality.

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection. Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Quality Grade comes from the ranking of key metrics. Specifically, the quality grade is the percentile rank of the composite of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and F-Score.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether Semtech Corporation and Tower Semiconductor Ltd. pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, Semtech Corporation or Tower Semiconductor Ltd. Stock?

Overall, Semtech Corporation stock has a Growth Score of 60, Momentum Score of 87 and Estimate Revisions Score of 95.

Tower Semiconductor Ltd. stock has a Growth Score of 73, Momentum Score of 95 and Estimate Revisions Score of 88.

Comparing Semtech Corporation and Tower Semiconductor Ltd.’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.