Israel chip manufacturer Tower Semiconductor I believe everyone is impressed. The Intel purchase case was cancelled in 2023. Now the stock price is strong and the market value has increased significantly. Over the past month, Tata Semiconductor stocks rose 45%, with a market value of $7.566 billion, surpassing Intel's $5.4 billion purchase price. Indiana deals cancelled were due to the blessing of Tata Semiconductor.
In early 2022, Intel announced that it would purchase Tatama semiconductors at $53 per share, with a total price of $5.4 billion, which would be 60% higher than the stock price at that time. However, due to the failure to obtain approval from the Chinese supervisory authority, the transaction finally broke the deadlock in 2023. After the deal was cancelled, Intel paid the tower semiconductor $353 million in compensation. Nevertheless, the share price of Tata semiconductor still fell to a minimum price of $22 per share after the trade was cancelled.
However, since mid-August 2025, the share price of Tata Semiconductor has continued to rise under a large number of transactions. As of the 10th, its share price had climbed to $67.65 per share, 27% higher than Intel's purchase price that year. Market analysts said that considering the internal problems such as management layer replacement, precision and reorganization that Intel is currently facing, if the transaction was successful that year, the current situation of the tower semiconductor might not be so pleasant.
Market analysts pointed out that the strong performance of Gaota Semiconductor's recent stock price is driven by multiple factors. First of all, it is caused by the overall entertainment and popularity of AI investment in the chip market. Analysts pointed out that the current chip market is full of intense investment. Investors are looking for related companies that have not yet been fully paid attention to the market and still have potential in stock prices. Gaota's semiconductor company was previously severely undervalued. Even after rising shares, its EBITDA's P/E ratio is still close to 10 times, far lower than the 20 or 30 times figures of other companies in the industry, making it still a cheaper company in the semiconductor company and is therefore subject to investors' youth.
Secondly, it is the geopolitical and industrial capacity advantages of the high tower semiconductor. Due to US President Trump's trade restrictions on China, the market has realized the lack of chip manufacturing capabilities outside China. The tower semiconductor has several crystal plants in the United States and is actively expanding its production capacity, making it a beneficiary under the current local political landscape.
Finally, Russell Ellwanger, executive director of Tower Semiconductor, said that the company is committed to strengthening its position as the main manufacturer of the next generation of high-performance communication ecosystem, which is mainly benefiting from its rapid expansion in the data center and AI markets. Among them, the AI-related businesses of the tower semiconductor are close to 30% of their total revenue. In addition, the company has also made significant progress in the optical communication field of data centers and the RF field related to the mobile market, thus gaining investors' youth.
The market maintains a high level of vigor about the future performance of the tower semiconductor. Oppenheimer maintains investment rates for Tata Semiconductor stocks "better than the big plate" and raises the target price from $60 to $70. US investment bank Benchmark also maintains confidence and awareness of the company's prospects and affirms its plan to expand its capacity, so it has increased its target price from $66 to $73 and maintained "buy" investment ratings. Overall, all analysts covering tower semiconductors currently give positive reviews, with an average target price above $70.
The success of tower semiconductors is not separated from the outstanding leader of Russell Ellwanger. He joined in 2005 when the company was in a difficult situation with huge debts. The future of the company was uncertain, but he believed that the company would be in the future and led the company to achieve a comprehensive strategic transformation and financial recovery. After the deal was cancelled, Ellwanger admitted that it might not be a good thing to not reach a deal, but it was not a big blow either. Therefore, the market believes that the current tower semiconductor is beginning to receive some of the rewards it receives.
The tower semiconductor has been in debt 20 years ago to now, and has now risen and surpassed Intel's purchase price. The story fully demonstrates strategic vision, technical strength and leadership. These key factors create huge value in the unpredictable chip market.