Tower Semiconductor (TSEM) surged 7.10% in pre-market trading, signaling a sharp rebound fueled by the company's much-anticipated Q2 financial results release and bullish institutional expectations.

Leading up to the report, Wedbush analysts projected a "beat and raise quarter," expecting Q2 revenue to come in at or above the company's guidance midpoint of $455 million. The firm noted that Tower Semiconductor has met or exceeded its revenue guidance midpoint for eight consecutive quarters. Market consensus anticipated Q2 revenue growth of 22.35% year-over-year and an adjusted EPS jump of 67.70% year-over-year. Additionally, silicon photonics capacity qualified in Q1 was expected to contribute more fully in Q2, with Wedbush modeling Q3 adjusted EPS of $0.92 on revenue of $490.7 million.

The stock had previously pulled back amid a broader semiconductor sector selloff, making the pre-market surge a clear reversal driven by the earnings catalyst and robust institutional sentiment.