The logo of Israeli analog integrated circuits developer, Tower Semiconductor is seen at their offices in Migdal HaEmek, northern Israel, February 28, 2022. Picture taken on February 28, 2022. REUTERS/Amir Cohen

(Reuters) -Israeli contract chipmaker Tower Semiconductor <TSEM.O> on Monday forecast fourth-quarter revenue above estimates, banking on strong demand for its chips used in data centers and AI infrastructure, sending its U.S.-listed shares up 15%.

The shares hit their highest in more than two decades following the results, after surging 63.2% this year.

The company expects quarterly revenue of $440 million, plus or minus 5%, compared with analysts' average estimate of $434.4 million, according to data compiled by LSEG.

Tower has been gaining share in fast-growing segments such as radio-frequency (RF) infrastructure as well as other cloud network and data-transmission-related platforms.

The company has been expanding its manufacturing capacity across Israel, U.S., Italy and Japan.

Tower manufactures analog and mixed-signal semiconductors for customers across industries including automotive, industrial, consumer electronics and communications.

CEO Russell Ellwanger said the market for its technologies essential for high-speed optical data transmission, combined with rising data center demand, is fueling strong growth.

Tower said it is investing an additional $300 million to expand the capacity and advance next-generation capabilities in its Silicon-Germanium and Silicon Photonics technologies, essential for high-speed optical data transmission.

Tower reported revenue of $395.7 million for the quarter ended September 30, topping expectations of $394 million.

Its quarterly adjusted earnings of 55 cents per share also beat estimates of 54 cents.

(Reporting by Arnav Mishra in Bengaluru; Editing by Shreya Biswas)