Tower Semiconductor: channel inventory is doing the work the demand is not
Revenue is being recognised into a channel that is not clearing it. The correction lands in the quarter after the one currently guided.
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Discussion · 4
Agree with the direction, less with the magnitude. The regulatory ceiling being quantified changes the model, not just the headline. How much does this depend on the macro cooperating?
I think the setup matters more than the thesis here. The contract structure matters more than the headline rate. Does the same logic apply to the closest comparable?
Thanks for showing the workings. The channel data is what makes this hard to dismiss. Would you underwrite this without the catalyst date?
I came in sceptical. I had not appreciated how much of this is already in consensus. How much of this do you think is already in the buy side's numbers?