If you still focus on end products like optical modules, you might be overlooking a key but low-key player in the upstream supply chain—$Tower Semicon(TSEM.US). In the silicon photonics and CPO ecosystem, it's more like the core foundry platform supporting underlying manufacturing capabilities.

Why is next week a critical juncture? Because NVIDIA's GTC conference is about to start, and the industry is buzzing about new photonics architectures. In fact, last month NVIDIA openly announced its collaboration with Tower to jointly advance the mass production of 1.6T silicon photonics. This is essentially laying the groundwork for technology and industry expectations ahead of the March launch event. Once downstream manufacturers start accelerating the adoption of related solutions, Tower Semiconductor, as a key silicon photonics foundry platform, is expected to further solidify its position and bargaining power in the supply chain.

Core logic: The growth path is clear and predictable, while market pricing still appears undervalued.

1. Capacity is being snapped up like crazy: 70% of silicon photonics capacity before 2028 has already been pre-booked! What does this mean? The spots are already filled even before the photonics technology truly takes off.

2. Profit expectations are set to soar: Current valuation models probably haven't factored in the "price increase" element. With surging demand, capacity quota premiums are inevitable. Revenue is heading towards $2.8 billion by 2028, and profits are highly likely to exceed expectations.

3. Extremely high certainty: With 70% of capacity already locked in, downside risks are capped. It's a solid "asymmetric" opportunity—limited risk, huge upside potential.

As a key foundry in the upstream supply chain, Tower Semiconductor is a "hidden champion," and its market value hasn't been fully recognized yet. The valuation reflected by the current stock price is clearly low. However, I predict that NVIDIA's GTC launch event will be a significant catalyst triggering the market to reassess the core value of silicon photonics foundries.

Operation: Enter if the stock price pulls back to the support level of 115-112 without breaking it. If it stabilizes above the 20-day moving average with increased volume on the right side, you can enter and look for a move towards previous highs. Those with no position can wait for a pullback (sp).

(Personal opinion, not investment advice)