G2 Investment Bets Big On Tower Semiconductor (TSEM) With a Purchase of 175,000 Shares

TSEM -0.39% PACK +3.69%

Key Points

• New York City-based G2 Investment Partners Management increased its position in Tower Semiconductor by 174,929 shares in the third quarter.

• Following the transaction, the fund reported holding 289,929 TSEM shares valued at $21 million.

• The stake now equals 4.2% of fund AUM, making it the fund’s third-largest holding.

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What Happened

According to a filing with the U.S. Securities and Exchange Commission dated Nov. 14, G2 Investment Partners Management LLC added 174,929 shares of Tower Semiconductor Ltd. (NASDAQ:TSEM) during the third quarter. The position’s value grew by approximately $16 million, bringing the stake to 289,929 shares, or $20.96 million, as of Sept. 30, 2025.

What Else to Know

The fund increased its position in Tower Semiconductor, which now represents 4.2% of its 13F assets under management.

Top five holdings after the filing:

• Dave: $29.1 million (6% of AUM)

• Ranpak Holdings: $22 million (4.5% of AUM)

• Tower Semiconductor: $21 million (4.3% of AUM)

• Porch Group: $19.9 million (4.1% of AUM)

• Pagaya Technologies: $19.3 million (4% of AUM)

As of Dec. 2, TSEM shares were priced at $116.47, up a staggering 147% over the past year and well outperforming the S&P 500's 14% gain in the same period.

Company Overview

Metric

Value

Price (as of market close Dec. 2)

$116.47

Market Capitalization

$13.1 billion

Revenue (TTM)

$1.5 billion

Net Income (TTM)

$191.3 million

Company Snapshot

Tower Semiconductor Ltd. is an independent semiconductor foundry with operations in the United States, Japan, other Asian countries, and Europe, focusing on analog and mixed-signal technologies. The company provides various customizable process technologies, including SiGe, BiCMOS, mixed signal/CMOS, RF CMOS, CMOS image sensor, integrated power management, and MEMS, to serve a wide range of markets. The company serves markets including consumer electronics, personal computers, communications, automotive, industrial, aerospace, military, and medical device products, and offers customizable process technologies.

Foolish Take

G2 Investment Partners has been building its position in Tower Semiconductor throughout the year. The firm had no position as of March 31, and now has increased its holding over the past six months.

G2 now holds Tower Semiconductor as its third largest holding. Tower's specialized fabrication capabilities support a variety of applications in sectors including consumer electronics, automotive, industrial, and communications markets.

The investment management firm clearly has a strong conviction in Tower's future business. That might be due to Tower management's optimistic outlook. Third-quarter revenue increased 6% sequentially quarter over quarter, but the company expects the pace of sequential growth to increase to about 11% in the fourth quarter.

Tower is also investing an additional $300 million in capital for capacity growth and next generation capabilities to support its customer base. G2 wants to participate in Tower's upcoming growth spurt.

Glossary

13F reportable assets under management: The total value of securities a fund must disclose quarterly to the SEC under Form 13F.Assets under management (AUM): The total market value of investments managed by a fund or investment firm.Net position change: The difference in the number or value of shares held in a security after recent buying or selling.Trailing twelve months (TTM): The 12-month period ending with the most recent quarterly report.Independent foundry: A semiconductor manufacturing company that produces chips for other firms, not for its own branded products.Wafer fabrication services: Manufacturing processes that turn raw silicon wafers into finished semiconductor devices for clients.Design enablement platforms: Tools and services that help customers design and manufacture semiconductor chips using a foundry's processes.Technology transfer: The process of sharing manufacturing processes or intellectual property between companies, often to enable production elsewhere.SiGe (Silicon-Germanium): A semiconductor material combining silicon and germanium, used to enhance chip performance.BiCMOS: A semiconductor technology combining bipolar and CMOS transistors for improved speed and power efficiency.RF CMOS: CMOS technology optimized for radio frequency (wireless communication) applications.MEMS (Micro-Electro-Mechanical Systems): Miniaturized mechanical and electronic devices made using semiconductor manufacturing techniques.

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Howard Smith has no position in any of the stocks mentioned. The Motley Fool recommends Pagaya Technologies. The Motley Fool has a disclosure policy.

G2 Investment Bets Big On Tower Semiconductor (TSEM) With a Purchase of 175,000 Shares was originally published by The Motley Fool