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Tower Semiconductor's 15min chart shows RSI Overbought, KDJ Death Cross.
ByAinvest
Thursday, Oct 9, 2025 10:07 am ET2min read
Based on Tower Semiconductor's 15-minute chart, we have observed that the Relative Strength Index (RSI) has entered an overbought state and the Kinetick Death Cross (KDJ) has triggered a death cross at 10:00 on 09/10/2025. This suggests that the stock price has risen too quickly and has exceeded its fundamental support levels. The momentum of the stock price is shifting towards the downside, indicating a potential for further decreases in the future.
Tower Semiconductor (NASDAQ: TSEM) has been a subject of interest among investors, with recent analyst coverage and strong historical performance. However, a review of the company's 15-minute chart reveals a significant technical sell signal. The Relative Strength Index (RSI) has entered an overbought state, indicating that the stock price has risen too quickly and may be due for a correction. Additionally, the Kinetick Death Cross (KDJ) triggered a death cross at 10:00 on 09/10/2025, suggesting a potential shift in momentum towards the downside [1].Analyst Sentiment
Barclays initiated coverage on Tower Semiconductor, highlighting its active role in fast-growing technologies such as Silicon Photonics and Silicon Germanium. The report also emphasized the company's international partnerships and expansion strategy [1]. Despite the recent positive analyst sentiment, the stock's share price has shown only modest movement, with a 1-year total shareholder return of just under 1% and a 5-year total return approaching 3%. However, investor interest appears to be warming as the company pursues growth in advanced chip segments and strengthens global collaborations [1].
Market Valuation
Tower Semiconductor's shares trade near recent highs, with a fair value estimate of $67.26 in the most popular narrative, but the last close was above $76. This suggests that the company is priced a step ahead of its fundamentals, with the narrative setting the stage for future gains tied to a sharp acceleration in revenues, margins, and industry leadership [1]. The company's current price-to-earnings ratio of 43.4x is above both the US semiconductor industry average (37.1x) and the estimated fair ratio of 34.7x, indicating that investors are pricing in a lot of future growth and optimism [1].
Fundamentals and Risks
Over the last five years, Tower Semiconductor has achieved compound earnings per share (EPS) growth of 19% per year, while its share price has grown by 29% annually. This indicates that the market's opinion of the business has improved over time [2]. However, the company has faced a total shareholder return of 64% in the last twelve months, which is better than the annualized return of 29% over half a decade, suggesting that the company is performing well recently [2]. Despite these positive fundamentals, investors should be aware of potential risks, such as a sudden drop in demand for specialty chips or unexpected shifts in customer relationships [1].
Conclusion
While Tower Semiconductor has shown strong historical performance and positive analyst sentiment, the recent technical sell signals suggest that investors should be cautious. The company's overbought RSI and KDJ death cross indicate a potential for further decreases in the stock price. Investors should carefully consider these signals and weigh the potential risks against the company's fundamentals and growth prospects.
References
[1] https://simplywall.st/stocks/us/semiconductors/nasdaq-tsem/tower-semiconductor/news/assessing-tower-semiconductor-nasdaqgstsem-valuation-as-barc
[2] https://finance.yahoo.com/news/tower-semiconductor-nasdaq-tsem-jumps-142836381.html
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