(Reuters) -Israeli contract chipmaker Tower Semiconductor forecast fourth-quarter revenue above estimates on Monday, driven by strong demand for its specialty analog chips used in data centers and artificial intelligence infrastructure.
The company expects quarterly revenue of $440 million, plus or minus 5%, compared with analysts’ average estimate of $434.4 million, according to data compiled by LSEG.
Tower, whose U.S.-listed shares were up 4.4% in premarket trading, has been gaining share in fast-growing segments such as Radio-Frequency (RF) infrastructure as well as other cloud network and data transmission-related platforms.
The company has been expanding its manufacturing capacity across Israel, U.S., Italy and Japan.
Tower manufactures analog and mixed-signal semiconductors for customers across industries including automotive, industrial, consumer electronics and communications.
CEO Russell Ellwanger said the market for its technologies essential for high-speed optical data transmission, combined with rising data center demand, is fueling strong growth.
Tower said it is investing an additional $300 million to expand the capacity and advance next-generation capabilities in its Silicon-Germanium and Silicon Photonics technologies, essential for high-speed optical data transmission.
Tower reported revenue of $395.7 million for the quarter ended September 30, topping expectations of $394 million.
Its quarterly adjusted earnings of 55 cents per share also beat estimates of 54 cents.
(Reporting by Arnav Mishra in Bengaluru; Editing by Shreya Biswas)
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