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Tower Semiconductor Rallies on 400–420 Gbps Silicon Photonics Demo With Coherent

An OFC showing spurred fresh bets on Tower’s AI data‑center roadmap, spotlighting low‑latency networking ties plus a new power platform.

Overview

  • Using a Coherent InP continuous‑wave high‑power laser, a Tower‑made silicon modulator on a production‑ready SiPho process transmitted 400 Gbps per lane and displayed a clear open eye at 420 Gb/s PAM4.
  • The companies said the result targets next‑generation 3.2‑terabit optical transceivers and broader silicon use in pluggable modules and co‑packaged optics for data‑center links.
  • Tower shares rose as much as 11% intraday Monday and were up about 5% by midday, extending a 31.2% weekly gain after recently touching a 25‑year high of $178.08.
  • Recent analyst actions point to a supportive stance, with price targets raised by Barclays to $142, Wedbush to $140, and Benchmark to $165 alongside Buy or Neutral ratings.
  • Tower also highlighted a partnership with Oriole Networks for ultra‑low, deterministic‑latency optical switching and introduced a new BCD power technology aimed at rising AI data‑center power demands.