Israeli chipmaker Tower Semiconductor saw its share price surge after announcing a collaboration with Nvidia to supply silicon photonics components for optical communication modules used in artificial intelligence data centers. The new platform promises data rates up to twice as high as previous solutions, offering enhanced bandwidth and throughput for optical connectivity, which is expected to significantly accelerate artificial intelligence performance in network infrastructures.

Tower's CEO highlighted ongoing investments in performance, scalability, and manufacturing capabilities, while Nvidia's networking executive emphasized the partnership's role in supporting supply chain and solution development for large-scale artificial intelligence applications. The company will soon publish its financial results, with analysts forecasting robust annual revenue and earnings per share.