$TSEM: Benefiting from datacenter demand

In the blistering heat of 2025's AI-fueled frenzy, data center demand has escalated into a full-blown crisis, devouring electricity at unprecedented rates—projected to consume up to 12% of U.S. power by 2030 and more than double globally to 945 terawatt-hours annually, according to the International Energy Agency—while record-breaking construction surges 30% year-over-year, ballooning sector debt by 112% to $25 billion amid frantic borrowing for hyperscale facilities that strain grids and thermal management systems alike. 

visualcapitalist.com +3

 This "excruciating" bottleneck, exacerbated by soaring power densities and AI's insatiable need for high-speed connectivity, has spotlighted resilient players like Tower Semiconductor ($TSEM), whose specialized analog and mixed-signal chips power critical data center components from optical transceivers to efficient power management; the Israeli foundry just boosted its Q4 revenue forecast above estimates on this boom, catapulting shares 15% higher after a Q3 beat, with fresh partnerships like the August unveiling of silicon photonics platforms alongside Xscape Photonics poised to capture the exploding $10 billion-plus optical interconnect market for AI hyperscalers. 

finance.yahoo.com +4

 As Goldman Sachs forecasts a 165% global power demand spike from these behemoths by decade's end, $TSEM's niche expertise positions it not just to endure, but to thrive amid the silicon scramble. 

goldmansachs.com

Ref:

AI is set to drive surging electricity demand from data centres (IEA forecast of 945 TWh global demand by 2030)
https://www.iea.org/news/ai-is-set-to-drive-surging-electricity-demand-from-data-centres-while-offering-the-potential-to-transform-how-the-energy-sector-works

AI to drive 165% increase in data center power demand by 2030 (Goldman Sachs forecast)
https://www.goldmansachs.com/insights/articles/ai-to-drive-165-increase-in-data-center-power-demand-by-2030

US data center build hits record as AI demand surges (30% YoY construction growth)
https://www.reuters.com/business/us-data-center-build-hits-record-ai-demand-surges-bank-america-institute-says-2025-09-10/

Data center debt skyrockets 112% — $25 billion issued as AI boom fuels borrowing frenzy (Debt surge to $25B)
https://m.economictimes.com/news/international/us/data-center-debt-skyrockets-112-25-billion-issued-as-ai-boom-fuels-borrowing-frenzy/amp_articleshow/125228221.cms

Tower Semiconductor posts upbeat revenue forecasts on data center boom ($TSEM Q4 guidance beat and AI-driven growth)
https://www.reuters.com/business/tower-semiconductor-forecasts-quarterly-revenue-above-estimates-data-center-boom-2025-11-10/