Tower Semiconductor (FRA:TOW) Moat Score: 5/10 (As of Jul. 05, 2026)


FRA:TOW Tower Semiconductor Ltd FRA:TOW
70 GF Score
Price €189.50
GF Value €49.09
Valuation Significantly Overvalued
! 1 Warning Sign
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What is Tower Semiconductor Moat Score?

Tower Semiconductor FRA:TOW -2.32% 70 Moat Score is 5 as of Jul. 05, 2026. GuruFocus rates FRA:TOW with a GF Score™ of 70/100 and a GF Value™ of €49.09 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,000 Semiconductors companies, Tower Semiconductor ranks better than 93.4% on this metric.

Tower Semiconductor has the Moat Score of 5, which implies that the company might have Narrow Moat - Solid narrow moat.

Tower Semiconductor has Narrow Moat: Tower Semiconductor has a solid narrow moat due to its specialized semiconductor manufacturing capabilities and customer relationships. However, it faces competition from larger semiconductor foundries and lacks significant pricing power.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Tower Semiconductor might have Narrow Moat - Solid narrow moat.

Tower Semiconductor  (FRA:TOW) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Tower Semiconductor Moat Score Related Terms

FRA:TOW vs NVDA, AVGO, MU: Moat Score Comparison

For the Semiconductors subindustry, Tower Semiconductor's Moat Score, along with its competitors' market caps and Moat Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Tower Semiconductor Moat Score vs Semiconductors Industry

For the Semiconductors industry and Technology sector, Tower Semiconductor's Moat Score distribution charts can be found below:

* The bar in red indicates where Tower Semiconductor's Moat Score falls into.


FRA:TOW
70GF Score
Tower Semiconductor Ltd FRA:TOW
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 5 mean?
Tower Semiconductor (FRA:TOW) has a Moat Score of 5 as of Jul. 05, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Tower Semiconductor ranks #66 out of 1000 companies in the Semiconductors industry, placing it in the top 6.6%.
Is Tower Semiconductor's Moat Score too high?
Tower Semiconductor's current Moat Score is 5. Based on the distribution chart, Tower Semiconductor ranks #66 out of 1000 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Tower Semiconductor has a GF Score™ of 70/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tower Semiconductor's Moat Score compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Tower Semiconductor ranks #66 out of 1000 companies for Moat Score. This places Tower Semiconductor in the top 7% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Semiconductors company?
A good Moat Score depends on the Semiconductors industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Tower Semiconductor's current Moat Score is 5. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tower Semiconductor stock overvalued right now?
Based on GuruFocus' analysis, Tower Semiconductor (FRA:TOW) is currently considered Significantly Overvalued. The stock's GF Value™ is €49.09, compared to a current price of €189.50 — trading 286% above its estimated fair value. The current Moat Score is 5. Tower Semiconductor's overall GF Score™ is 70/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Tower Semiconductor (FRA:TOW), the current Moat Score is 5 as of Jul. 05, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Tower Semiconductor (FRA:TOW) Overvalued in 2026?

Based on GuruFocus' analysis, Tower Semiconductor stock appears to be overvalued. The current stock price of €189.50 is trading 286% above its estimated GF Value™ of €49.09. GuruFocus considers Tower Semiconductor to be Significantly Overvalued.

Key valuation signals for FRA:TOW:

  • Moat Score: 5
  • GF Value™: €49.09 vs. price of €189.50 (286% above fair value)
  • GF Score™: 70/100 with 1 warning sign

No single metric tells the full story. See the FRA:TOW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Tower Semiconductor Business Description

Address 20 Shaul Amor Avenue, P.O. Box 619, Ramat Gavriel Industrial Park, Migdal Haemek, ISR, 2310502
Tower Semiconductor Ltd is a pure-play specialty foundry that manufactures semiconductors. As a pure-play foundry, it focuses on producing integrated circuits (ICs) based on the design specifications of customers. The company's line of integrated circuits is incorporated into markets, including consumer electronics, personal computers, communications, automotive, and industrial and medical device products. It produces ICs alongside wholly-owned subsidiaries through fabrication facilities located in Japan. The company has a geographical presence in the USA, Japan, Asia (other than Japan), and Europe.
70GF Score

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Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€189.50
Price
€49.09
GF Value