Why Tower Semiconductor Stock Jumped Today
With nothing more than a passing glance, it would be easy to assume shares of small-but-scrappy semiconductor company Tower Semiconductor (NASDAQ: TSEM) are up today simply because the broad market is back in bullish mode following last week's stumble. And to be fair, that shift is playing a role in Monday's reversal of last week's pullback.
There's more quietly at work here than a mood shift though. Although most ordinary investors won't fully understand it, this technology company, along with developmental partner (NYSE: COHR), recently unveiled a technological breakthrough that could significantly step up the performance of artificial intelligence data centers.
In simplest terms, Tower Semiconductor and Coherent have figured out a way to speed up connections between the thousands of computing processors operating at any given time within any and all data centers. Rather than using an electrical signal delivered by wire or silicon, light sent through a fiber-optic cable can do the same job at a much faster rate.
Source Fool.com
