TSEM vs. AXTI

Last updated Jun 3, 2026

TSEM (Tower Semiconductor Ltd) and AXTI (AXT, Inc.) are both stocks. Both are in the Technology sector — TSEM in Semiconductors, AXTI in Semiconductor Equipment & Materials. Over the past 10 years, TSEM returned 35.62%/yr vs 41.04%/yr for AXTI. At a 0.25 correlation, their price movements are largely independent.

Performance

TSEM vs. AXTI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Tower Semiconductor Ltd (TSEM) and AXT, Inc. (AXTI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TSEM achieves a 133.96% return, which is significantly lower than AXTI's 577.98% return. Over the past 10 years, TSEM has underperformed AXTI with an annualized return of 35.62%, while AXTI has yielded a comparatively higher 41.04% annualized return.

TSEM

• 1D: 8.78%
• 1M: 26.01%
• YTD: 133.96%
• 6M: 135.88%
• 1Y: 582.17%
• 3Y*: 92.75%
• 5Y*: 59.78%
• 10Y*: 35.62%

AXTI

• 1D: 1.19%
• 1M: 15.47%
• YTD: 577.98%
• 6M: 842.60%
• 1Y: 6,960.51%
• 3Y*: 216.99%
• 5Y*: 61.40%
• 10Y*: 41.04%

*Multi-year figures are annualized to reflect compound growth (CAGR)

TSEM vs. AXTI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
TSEM Tower Semiconductor Ltd	133.96%	127.96%	68.77%	-29.35%	8.87%	53.68%	7.32%	63.23%	-56.75%	79.09%
AXTI AXT, Inc.	577.98%	653.46%	-9.58%	-45.21%	-50.28%	-7.94%	120.00%	-0.00%	-50.00%	81.25%

Correlation

The correlation between TSEM and AXTI is 0.39, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.39
Correlation (3Y) Calculated over the trailing 3-year period	0.34
Correlation (5Y) Calculated over the trailing 5-year period	0.36
Correlation (10Y) Calculated over the trailing 10-year period	0.39
Correlation (All Time) Calculated using the full available price history since May 22, 1998	0.25

The correlation between TSEM and AXTI shifts across timeframes, from 0.25 (all time) to 0.39 (1 year), reflecting how their relationship changes across market environments.

Fundamentals

Market Cap TSEM : $31.41B AXTI : $5.91B
EPS TSEM : $2.15 AXTI : -$0.30
PS Ratio TSEM : 19.29 AXTI : 53.59
PB Ratio TSEM : 10.56 AXTI : 21.78
Total Revenue (TTM) TSEM : $1.62B AXTI : $95.89M
Gross Profit (TTM) TSEM : $401.63M AXTI : $20.46M
EBITDA (TTM) TSEM : $571.93M AXTI : -$7.63M

Return for Risk

TSEM vs. AXTI — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

TSEM

TSEM Risk / Return Rank: 99
TSEM Sharpe Ratio Rank: 100
TSEM Sortino Ratio Rank: 99
TSEM Omega Ratio Rank: 98
TSEM Calmar Ratio Rank: 99
TSEM Martin Ratio Rank: 100

AXTI

AXTI Risk / Return Rank: 99
AXTI Sharpe Ratio Rank: 100
AXTI Sortino Ratio Rank: 99
AXTI Omega Ratio Rank: 98
AXTI Calmar Ratio Rank: 100
AXTI Martin Ratio Rank: 100

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

TSEM vs. AXTI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Tower Semiconductor Ltd (TSEM) and AXT, Inc. (AXTI). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	TSEM	AXTI	Difference
Sharpe ratio Return per unit of total volatility	8.77	52.27	-43.50
Sortino ratio Return per unit of downside risk	6.10	7.16	-1.06
Omega ratio Gain probability vs. loss probability	1.79	1.89	-0.11
Calmar ratio Return relative to maximum drawdown	23.82	187.36	-163.54
Martin ratio Return relative to average drawdown	87.95	579.77	-491.82
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TSEM vs. AXTI - Sharpe Ratio Comparison

The current TSEM Sharpe Ratio is 8.77, which is lower than the AXTI Sharpe Ratio of 52.27. The chart below compares the historical Sharpe Ratios of TSEM and AXTI, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	TSEM	AXTI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	8.77	52.27	-43.50
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.29	0.64	+0.64
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.83	0.50	+0.32
Sharpe Ratio (All Time) Calculated using the full available price history	0.03	0.11	-0.08

Drawdowns

TSEM vs. AXTI - Drawdown Comparison

The maximum TSEM drawdown since its inception was -99.75%, roughly equal to the maximum AXTI drawdown of -98.57%. Use the drawdown chart below to compare losses from any high point for TSEM and AXTI.

Drawdown Indicators

	TSEM	AXTI	Difference
Max Drawdown Largest peak-to-trough decline	-99.75%	-98.57%	-1.18%
Max Drawdown (1Y) Largest decline over 1 year	-25.04%	-38.65%	+13.61%
Max Drawdown (3Y) Largest decline over 3 years	-46.78%	-78.52%	+31.74%
Max Drawdown (5Y) Largest decline over 5 years	-55.39%	-90.57%	+35.18%
Max Drawdown (10Y) Largest decline over 10 years	-62.28%	-92.45%	+30.17%
Current Drawdown Current decline from peak	-54.08%	-21.29%	-32.79%
Average Drawdown Average peak-to-trough decline	-85.42%	-82.34%	-3.08%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.78%	12.49%	-5.71%

Volatility

TSEM vs. AXTI - Volatility Comparison

The current volatility for Tower Semiconductor Ltd (TSEM) is 29.78%, while AXT, Inc. (AXTI) has a volatility of 38.33%. This indicates that TSEM experiences smaller price fluctuations and is considered to be less risky than AXTI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TSEM	AXTI	Difference
Volatility (1M) Calculated over the trailing 1-month period	29.78%	38.33%	-8.55%
Volatility (6M) Calculated over the trailing 6-month period	53.68%	111.90%	-58.22%
Volatility (1Y) Calculated over the trailing 1-year period	67.03%	135.49%	-68.46%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	46.79%	95.88%	-49.09%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	43.33%	82.31%	-38.98%

Dividends

TSEM vs. AXTI - Dividend Comparison

Neither TSEM nor AXTI has paid dividends to shareholders.

Tickers have no history of dividend payments

Financials

TSEM vs. AXTI - Profitability Comparison

The chart below illustrates the profitability comparison between Tower Semiconductor Ltd and AXT, Inc. over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

TSEM - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Tower Semiconductor Ltd reported a gross profit of 110.95M and revenue of 413.63M. Therefore, the gross margin over that period was 26.8%.

AXTI - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, AXT, Inc. reported a gross profit of 7.98M and revenue of 26.92M. Therefore, the gross margin over that period was 29.6%.

TSEM - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Tower Semiconductor Ltd reported an operating income of 64.57M and revenue of 413.63M, resulting in an operating margin of 15.6%.

AXTI - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, AXT, Inc. reported an operating income of -1.59M and revenue of 26.92M, resulting in an operating margin of -5.9%.

TSEM - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Tower Semiconductor Ltd reported a net income of 65.03M and revenue of 413.63M, resulting in a net margin of 15.7%.

AXTI - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, AXT, Inc. reported a net income of -1.62M and revenue of 26.92M, resulting in a net margin of -6.0%.

Frequently Asked Questions

Can I hold both TSEM and AXTI in my portfolio?

TSEM and AXTI have a correlation of 0.39, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TSEM or AXTI?

AXTI has higher volatility (38.33%) compared to TSEM (29.78%). In terms of maximum drawdown, TSEM dropped -99.75% vs AXTI's -98.57%.

Which has better risk-adjusted returns?

AXTI currently has the higher Sharpe Ratio (52.27 vs 8.77), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.