--- title: "2 Stocks Bank of America Says Are Worth Buying as the Market Defies the Bears" type: "News" locale: "en" url: "https://longbridge.com/en/news/295779553.md" description: "Bank of America's latest Capital Market Outlook highlights U.S. economic resilience against global headwinds, citing energy strength, dollar dominance, and consumer spending. Based on this outlook, BofA analysts recommend buying Tower Semiconductor (TSEM). The bank praises TSEM's technological leadership in silicon photonics and strong Q2 earnings, assigning a Buy rating with a $367 price target, anticipating significant capacity expansion and market share growth." datetime: "2026-08-13T09:55:00.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/295779553.md) - [en](https://longbridge.com/en/news/295779553.md) - [zh-HK](https://longbridge.com/zh-HK/news/295779553.md) generator: "portal-rs" --- # 2 Stocks Bank of America Says Are Worth Buying as the Market Defies the Bears The bears and naysayers keep finding reasons to doubt the U.S. economy. So far, America keeps finding reasons to prove them wrong. That resilience has carried over to the stock market, and it sits at the core of the latest Capital Market Outlook from Bank of America. ### Claim 55% Off TipRanks High conviction TSEM bears now have this Tradr ETF The report points to several advantages that have helped the U.S. withstand a difficult global backdrop. America's energy strength has reduced its reliance on imported oil and made the economy less vulnerable to swings in crude prices. The U.S. dollar remains the world's dominant reserve currency, supported by confidence in the country's economy and financial system. American consumers have continued spending, helping keep growth moving, while corporate earnings remain another important source of strength. In all, these advantages have given the U.S. economy a degree of resilience that few other countries can match. The BofA team sums up the disconnect between persistent worries and what has actually unfolded: "Investors have had to navigate various crosscurrents over the past few years, ranging from unsettled geopolitics, to fractured global supply chains, to disruptions from AI. Each one of these forces—and others—has triggered a chorus of worry among market pessimists. Yet amid the gloom, something curious keeps happening—the dire predictions of the worrywarts never happen, disappointing and 'surprising' market bears. From our vantage point, successful investing requires distinguishing between genuine surprises and developments that merely surprise those bearish on the U.S." BofA's stock analysts are putting that thinking to work, looking for stocks positioned to benefit if the U.S. economy keeps proving the pessimists wrong. Using TipRanks' database, we pulled up the latest details on two names the bank believes have more room to run. Let's check them out. **Tower Semiconductor** **(TSEM)** We'll start in the semiconductor field, where so much of the market's recent strength has been concentrated. Tower Semiconductor was founded in 1993 and today is a small but important player in the global semiconductor fabrication industry. That is, Tower doesn't focus on designing new chips, but rather, it develops the manufacturing capacity to put other companies' designs into serial production. Fab companies like Tower fill an important role: by concentrating on the production side of the industry, they allow other parts of the industry to focus on chip development and design. In this field, Tower is known for producing high-value analog semiconductor solutions. These are customized products used in such process technologies as high performance analog (HPA), integrated power management, CMOS image sensors (CIS), non-imaging sensors (NIS) and mixed-signal CMOS. The company has a specific reputation for making high-end radio frequency (RF) products, with world-leading silicon photonics (SiPho) and silicon germanium (SiGe) platforms. Tower operates five fabrication facilities of its own or through its Japanese partnership, while sharing a sixth facility with STMicroelectronics in Italy. The company has one fab in Israel, two in the U.S. – one each in California and Texas – and two in Japan. The Japanese locations are operated in partnership with Nuvoton Technology. We should note that Tower also shares an Italian facility with STMicroelectronics. In its last earnings report, covering 2Q26, Tower reported a top line of just over $460 million. This was up 23% year-over-year, and beat expectations by $5.4 million. Tower notes that this revenue is a company record. At the bottom line, the company reported a record net profit for 2Q26 of $91 million. This figure translated to a basic EPS of $0.80 and a diluted EPS of $0.79. The 79-cent diluted EPS was 12 cents per share better than the forecast. Tower's performance so far certainly reflects that strength, with TSEM shares soaring 122% year-to-date. And despite that huge run, BofA analyst Oliver Wong still sees several reasons for investors to like what the chip foundry has to offer. "Compared to competitors like GlobalFoundries, we believe Tower has the clearest demand visibility and is the primary supplier for 1.6T SiPho PICs, the leading segment in the optical data center communications currently… We expect Tower's structural advantages including technological leadership to enable it to defend its market leadership as competitors ramp. With industry growth limited by the availability of qualified foundry capacity, Tower's planned expansion to more than 5x its 4Q25 SiPho capacity run rate by 4Q26, together with its subsequent significant Japan expansion, positions it to capture growth and we believe there is upside to its 2028 targets based on higher utilization rates, increased pricing and accelerated capacity expansion," Wong opined. Wong's bullish stance comes along with a Buy rating, and a $367 price target that suggests a one-year gain of 41%. (To watch Wong's track record, click here) Overall, Tower has a clear vote of confidence from Wall Street. 4 of the 5 analysts covering TSEM recommend buying the stock, while one remains on the sidelines, giving it a Strong Buy consensus rating. The $325.64 average price target maps out 25% upside from the current $260 level. 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