Daily Views on Tech Headlines | TSEM, Memory, Quantum

Research evidence excerpt

Daily Views on Tech Headlines | TSEM, Memory, Quantum

Quick Note

May 13, 2026 Hardware

Analysts

Matt Bryson

(617) 695-6302 TSEM: 1Q26 Earnings First thoughtsmatthew.bryson@wedbush.com

Antoine Legault, CFA, CPA View: TSEM delivered a nice beat and raise, with GMs in particular exceeding our

(626) 497-1619 prior Q1 expectation and holding stable Q/Q despite lower revenues (in our viewantoine.legault@wedbush.com

in part illustrating the benefit of the company’s continued mix shift towards more

favorable products and particularly SiPh). Looking to Q2, top-line expectations

are slightly higher than our above Street sales outlook despite management’s

tendency to guide somewhat conservatively. Most importantly, though, we believe

the positive reaction is tied to management’s commentary indicating TSEM has

$1.3B in SiPh commitments from its largest customers for 2027. We believe this

number roughly validates current buyside expectations and implies 20% – 30%

upside vs. the SiPh contribution anticipated by sell-side consensus.

Tower

Memory: DRAM/NAND spot tick up

View: The moves reported by TrendForce were relatively modest in nature with

mainstream DDR5 lifting 3.7% and NAND only up 0.3%. And we also believe spot

pricing shifts have minimal implications at this juncture with secondary markets

having slowed considerably as the large lift in spot has weighed on demand. Having

said this, we also believe at points that declines in spot (and particularly the

prolonged dips in March) have been pointed to as a cause for concern around the

sustainability of current market strength. As such, we believe stable/higher pricing

would/should invalidate any such lingering concerns.

TrendForce

Photonic Inc.: Closes $200M+ round at $2B valuation

View: Photonic Inc.