Tower Semiconductor shares rise 7.14% after-hours on partnership with Nvidia for 1.6T AI optical modules.

Tower Semiconductor surged 7.14% in after-hours trading following a partnership with Nvidia to develop 1.6T data center optical modules using silicon photonics technology. The collaboration, highlighted in multiple news reports, positions Tower as a key enabler of next-generation AI infrastructure by addressing high-speed data connectivity needs. Nvidia’s senior vice president for networking emphasized the role of silicon photonics in advancing scalable AI ecosystems, while Tower’s CEO underscored its investment in high-performance platforms to meet growing data center demands. The announcement aligns with the company’s focus on AI and telecom applications, reinforcing its strategic relevance in the semiconductor sector. Recent technical progress in scaling silicon photonics for 1.6T modules further supports investor optimism, driving the post-market rally.