By Ariel Gold
The Deal That Looked Too Good to Miss
In February 2022, Intel signed a $5.4 billion agreement to acquire Tower Semiconductor, a small, highly specialized Israeli semiconductor manufacturer based in Migdal HaEmek. At the time, it looked like a fantastic deal. Intel offered about 60% more than Tower’s market value, giving shareholders a chance to cash out at a very attractive price.
But in August 2023, the deal collapsed because regulators did not approve the acquisition before the deadline expired. Intel was required to pay Tower a $353 million breakup fee.
From Disappointment to Dramatic Upside
For many employees and investors, it felt like a huge disappointment. What seemed like a guaranteed payout suddenly disappeared overnight. When the acquisition broke up, they went from a near certain liquidity event to nothing. However, less than three years later, the picture looks dramatically different.
After reporting very strong results in early 2026, the company’s stock has risen sharply. Since the Intel deal collapsed in 2023, the stock has gained roughly 550%, nearly 100% this year alone, and Tower is now worth far more than Intel originally offered to pay for it.
Tower’s current market capitalization now stands at approximately $30 billion, more than five times the valuation implied in the original Intel acquisition agreement. The employees and investors who once felt they had missed a life-changing opportunity, ended up benefiting far more by remaining shareholders in the company. What looked like bad news at the time eventually became a much bigger opportunity.
Employees who once felt deprived of a generous exit now find themselves significantly wealthier as shareholders of a thriving independent company. What seemed like a missed opportunity has, in hindsight, turned into a far greater one.
A Broader Lesson: Patience, Ownership, and the Power of the Israeli Market
Tower’s journey is more than a corporate comeback story. It is a compelling case study in the virtue of long-term ownership. News headlines, politics, wars, exchange rates, interest rates, and failed deals can make investors feel they need to react immediately. There is always a crisis or an opportunity that can throw us off course and short-term market events can dominate investor psychology. But lasting wealth is usually built by staying invested in strong companies over many years, not by constantly jumping in and out of the market.
Short-term market events can dominate investor psychology, but durable wealth is generally built through patient ownership of strong businesses over long periods of time.
Israel’s Resilience as an Investment Story
For investors with exposure to Israel, this lesson carries additional significance. Over the past several years, Israel has faced enormous challenges — war, political tension, global uncertainty, and economic pressure. Yet many Israeli companies have continued to grow and innovate. Israel remains a world leader in areas like technology, cybersecurity, semiconductors, defense systems, and energy.
Investors sometimes hesitate to invest in Israel because the news can make it appear unstable. But history has often rewarded those who were willing to play the long game, especially during difficult periods. Since October 7th, the Israeli market has skyrocketed, rewarding local investors, including the substantial pension assets invested in the market. The average Israeli has benefited greatly, especially those willing to remain with higher stock exposure in their accounts.
The Currency Question for Olim and Israelis
For Israelis and olim, there is another important reason to include Israeli investments as part of a long-term plan: currency exposure. Many olim historically invested most of their money in U.S. markets and U.S. dollars, even while living their entire lives in Israel and spending in shekels. With the shekel reaching 30 year highs, even the most dollar-centered investor is re-evaluating their plans and with good reason. If your future expenses are largely denominated in shekels — housing, groceries, retirement, helping children, daily life — then having investments tied to the Israeli economy, the local inflation and interest rates and overall success of its companies, can help protect you from long-term currency shifts.
At Labinsky Financial, we help olim and future olim approach Aliyah with clarity, confidence, and careful financial planning. As new tax opportunities reshape the financial picture for those considering a move to Israel, our role is to help individuals and families understand how these changes may affect their income, investments, and long-term goals. We work closely with clients before and after Aliyah to build practical strategies, avoid costly mistakes, and make informed decisions, so they can move forward with greater confidence as they build their financial future in Israel.
The Takeaway: Stay Invested, Stay Diversified
A strong financial plan should not only focus on where markets may grow. It should also reflect where you actually live your life and spend your money. If your investment advisor was convinced that the Japanese Yen would go up in value together with a Japanese stock market, you still wouldn’t invest all your money in a foreign country thousands of miles away, where they make decisions with the local population in mind. But this logic often fails with American dollar investors. That does not mean that investing exclusively in Israel is the way to go. Diversification still matters. But for people building a future here, Tower teaches us that Israeli investments deserve to be part of the conversation. Its story is a reminder that some of the best investment outcomes come not from finding the perfect moment to sell, but from having the patience to stay invested through uncertainty. Sometimes the biggest rewards come from staying the course.