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 Tower Semiconductor Ltd. or Broadcom Inc. 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 Tower Semiconductor Ltd. and Broadcom Inc. compare based on key financial metrics to determine which better meets your investment needs.

About Tower Semiconductor Ltd. and Broadcom Inc.

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, 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 various markets, such as 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.

Broadcom Inc. designs, develops, and supplies various semiconductor devices and infrastructure software solutions worldwide. The company operates in two segments, Semiconductor Solutions and Infrastructure Software. It provides Ethernet switching and routing custom silicon solutions, optical and copper physical layer devices, and fiber optic transmitter and receiver components; set-top box system-on-chips (SoCs), data over cable service interface specifications cable modem and networking infrastructure, DSL access multiplexer/PON optical line termination products, and Wi-Fi access point SoCs, as well as digital subscriber line (DSL)/cable, passive optical networking (PON) gateways; and fiber optic components and mobile device connectivity solutions. The company also offers RF front end modules and filters; Wi-Fi, Bluetooth, and global positioning system/global navigation satellite system SoCs; custom touch controllers; inductive charging application specific integrated circuits; serial attached small computer system interface and redundant array of independent disks controllers and adapters, peripheral component interconnect express switches, fiber channel host bus adapters, read channel based SoCs, custom flash controllers, and preamplifiers; and optocouplers, industrial fiber optics, industrial and medical sensors, motion control encoders and subsystems, light emitting diodes, ethernet PHYs, switch ICs, and camera microcontrollers. Its products are used in various applications in enterprise and data center networking, including artificial intelligence networking and connectivity, home connectivity, set-top boxes, broadband access, telecommunication equipment, smartphones and base stations, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays. Broadcom Inc. was founded in 1961 and is headquartered in Palo Alto, California.

Latest Semiconductors & Semiconductor Equipment and Tower Semiconductor Ltd., Broadcom Inc. Stock News

As of December 12, 2025, Tower Semiconductor Ltd. had a $14.5 billion market capitalization, compared to the Semiconductors & Semiconductor Equipment median of $2.7 million. Tower Semiconductor Ltd.’s stock is up 130.9% in 2025, up 4.3% in the previous five trading days and up 165.31% in the past year.

Currently, Tower Semiconductor Ltd.’s price-earnings ratio is 69.7. Tower Semiconductor Ltd.’s trailing 12-month revenue is $1.4 billion with a 12.9% net profit margin. Year-over-year quarterly sales growth most recently was -4.0%. Analysts expect adjusted earnings to reach $2.178 per share for the current fiscal year. Tower Semiconductor Ltd. does not currently pay a dividend.

As of December 12, 2025, Broadcom Inc. had a $1.7 trillion market cap, putting it in the 100th percentile of all stocks. Broadcom Inc.’s stock is up 55.2% in 2025, down 7.8% in the previous five trading days and up 109.49% in the past year.

Currently, Broadcom Inc.’s price-earnings ratio is 92.5. Broadcom Inc.’s trailing 12-month revenue is $59.9 billion with a 36.2% net profit margin. Year-over-year quarterly sales growth most recently was 22.0%. Analysts expect adjusted earnings to reach $10.139 per share for the current fiscal year. Broadcom Inc. currently has a 0.7% dividend yield.

How We Compare Tower Semiconductor Ltd. and Broadcom Inc. 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 Tower Semiconductor Ltd. and Broadcom Inc.’s stock grades to see how they measure up against one another.

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Tower Semiconductor Ltd. and Broadcom Inc. Growth Grades

Company	Ticker	Growth
Tower Semiconductor Ltd.	TSEM	B
Broadcom Inc.	AVGO	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.

Tower Semiconductor Ltd. has a Growth Score of 75, which is Strong. Broadcom Inc. has a Growth Score of 70, which is Strong.

The Growth Grade Winner: It’s a Tie!

Looking at the Growth Grade breakdown above, both Tower Semiconductor Ltd. and Broadcom Inc. have a grade of B. For investors who focus solely on a company’s upward growth, further research should be conducted into both companies’ other financial metrics before deciding whether to invest.

Tower Semiconductor Ltd. and Broadcom Inc.’s Quality Grades

Company	Ticker	Quality
Tower Semiconductor Ltd.	TSEM	B
Broadcom Inc.	AVGO	A

Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Score is the percentile rank of the average of the percentile ranks 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 the F-Score.

The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.

The Quality Score is used to assess the underlying “quality” of a particular stock. A higher-quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.

Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.

Tower Semiconductor Ltd. has a Quality Score of 74, which is Strong. Broadcom Inc. has a Quality Score of 93, which is Very Strong.

The Quality Grade Winner: Broadcom Inc.

As you can clearly see from the Quality Grade breakdown above, Broadcom Inc. has a better overall quality grade than Tower Semiconductor Ltd.. For investors who are looking for companies with higher quality than others in the same industry, Broadcom Inc. could be a good stock to add to their portfolios. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Tower Semiconductor Ltd. and Broadcom Inc.’s Momentum Grades

Company	Ticker	Momentum
Tower Semiconductor Ltd.	TSEM	A
Broadcom Inc.	AVGO	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%.

Tower Semiconductor Ltd. has a Momentum Score of 97, which is Very Strong. Broadcom Inc. has a Momentum Score of 84, which is Very Strong.

The Momentum Grade Winner: It’s a Tie!

Looking at the Momentum Grade breakdown above, both Tower Semiconductor Ltd. and Broadcom Inc. 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.

Other Tower Semiconductor Ltd. and Broadcom Inc. Grades

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

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

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.

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 Tower Semiconductor Ltd. and Broadcom Inc. pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, Tower Semiconductor Ltd. or Broadcom Inc. Stock?

Overall, Tower Semiconductor Ltd. stock has a Growth Score of 75, Momentum Score of 97 and Quality Score of 74.

Broadcom Inc. stock has a Growth Score of 70, Momentum Score of 84 and Quality Score of 93.

Comparing Tower Semiconductor Ltd. and Broadcom Inc.’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.