March 11 (Bloomberg) -- Tower Semiconductor Ltd. rose the most in almost seven months in Tel Aviv on prospects the chipmaker’s revenue will be bolstered by sales to the mobile handset market.
Shares of the Migdal Haemek, Israel-based company climbed 7.6 percent, the most since Aug. 16, to 25.6 shekels at the close in Tel Aviv. The TA-25 Index declined less than 0.2 percent. Trading was 4.3 times the three-month average daily volume, according to data compiled by Bloomberg.
The company will provide its silicon radio platform for smart phones and other mobile systems, according to a Business Wire statement today. The handset front-end market is expected to double to $10 billion by 2017, Tower said in the statement, citing a 2012 report by Mobile Experts LLC.
“This could be a very positive development taking into consideration the cellphone market is a growing one,” Sabina Podval, an analyst at Leader & Co. Investment House Ltd. in Tel Aviv, said by phone today. “This might add several tens of millions of dollars to revenues during the next few years.”
Tower shares have declined 35 percent in the past 12 months compared with a 14 percent gain in the TA-25. The company last month reported fourth-quarter revenue below consensus and is expected to post a 32 percent drop in revenue in the first quarter of this year, according to estimates of two analysts surveyed by Bloomberg.
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