AMKR

Amkor Technology AMKR is scheduled to report third-quarter 2026 results on Oct. 26. For the quarter, the company expects revenues between $1.95 billion and $2.05 billion. The Zacks Consensus Estimate for revenues is pegged at $2.02 billion, indicating year-over-year growth of 1.54%. Amkor Technology projects earnings between 72 cents and 82 cents per share. The consensus mark for earnings stands at 79 cents per share, reflecting growth of 54.9% from the year-ago quarter. The consensus EPS estimate has remained unchanged over the past 30 days. Image Source: Zacks Investment Research Amkor Technology has an impressive earnings surprise history, surpassing the Zacks Consensus Estimate in each of the trailing four quarters and delivering an average earnings surprise of 43.58%. In the second quarter of 2026, the company reported earnings of 70 cents per share, beating the consensus estimate of 47 cents by 43.58%. Amkor Technology, Inc. price-eps-surprise | Amkor Technology, Inc. Quote Our proven model does not conclusively predict an earnings beat for Amkor Technology this time around. According to the Zacks model, a positive Earnings ESP combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. AMKR has an Earnings ESP of 0.00% and currently carries a Zacks Rank #3. You can uncover potential earnings-beat candidates with the Zacks Earnings ESP Filter. Amkor Technology is expected to have benefited from accelerating demand for AI data center and high-performance computing applications in the third quarter of 2026. The Computing end market achieved record revenues in the second quarter, increasing 20% sequentially. Management expects Computing revenues to grow nearly 30% sequentially in the third quarter, supported by robust AI infrastructure demand and the continued ramp-up of its high-density fan-out (HDFO) data center CPU program. Growing adoption of advanced packaging technologies is likely to have strengthened the company's revenue growth in the quarter under review. Amkor Technology is expected to have gained from strong demand across its Automotive and Industrial end market, driven by increasing semiconductor content in vehicles and growing adoption of advanced driver-assistance systems (ADAS). The segment achieved record revenues in the preceding quarter, growing 17% sequentially. Management expects mid-single-digit sequential growth in the third quarter. Additionally, the Consumer end market is expected to have benefited from broad-based Internet of Things (IoT) demand, with revenues projected to increase in the mid-teens percentage range sequentially. These trends are likely to have supported overall revenue growth. The company is anticipated to have benefited from an improving product mix and higher utilization of advanced packaging capacity. Its advanced products generated $1.56 billion in second-quarter revenues, accounting for approximately 82% of total sales. Accelerating HDFO production and growing demand for higher-value Computing applications are expected to have supported profitability in the third quarter. Management projects gross margin between 18.5% and 19.5%, compared with 16.8% in the preceding quarter. Strategic collaborations with TSMC and NVIDIA further strengthen Amkor Technology's long-term competitive position in advanced packaging. However, Amkor Technology is expected to have faced headwinds in its Communications end market during the third quarter of 2026. Management anticipates a high-single-digit sequential revenue decline, departing from typical seasonal demand patterns. Ongoing memory supply constraints, changes in smartphone production schedules and softer Android demand are likely to have weighed on performance. Android revenues declined 20% sequentially in the preceding quarter due to memory supply dynamics. Given that Communications contributed 42% of second-quarter revenues, these challenges are expected to have partially offset growth in Computing and other end markets. Amkor Technology's ongoing transition of system-in-package (SiP) manufacturing from Korea to Vietnam is also expected to have affected third-quarter revenues. The strategic relocation involves equipment transfers, customer qualifications and production ramp-ups, potentially creating temporary shipment disruptions. Management indicated that certain applications could experience headwinds extending into the fourth quarter and the first half of 2027. Although the transition is intended to improve manufacturing efficiency and release capacity in Korea for advanced Computing programs, near-term execution challenges are likely to have constrained Communications revenues in the quarter under review. Amkor Technology's shares have risen 36.7% in the past year, substantially outperforming both the Zacks Computer and Technology sector and the Zacks Electronics - Semiconductors industry, which gained 18.4% and 13.7%, respectively. AMKR's strong performance also stands out against its peers, including Ambarella AMBA, Broadcom AVGO and GlobalFoundries GFS. Over the past year, Ambarella and Broadcom's shares have declined 20.9% and 1.9%, respectively, while GlobalFoundries has appreciated 35.6%. This relative strength highlights the market's favorable view of Amkor Technology's AI and advanced-packaging opportunity compared with several semiconductor peers. Image Source: Zacks Investment Research From a valuation standpoint, AMKR appears attractively priced, trading at a trailing 12-month price-to-sales (P/S) ratio of 1.47X, significantly below the industry average of 13.6X. AMKR has a Zacks Value Score of A, compared with F for Ambarella and Broadcom and C for GlobalFoundries, indicating a more favorable valuation profile. Image Source: Zacks Investment Research Amkor Technology's strong position in outsourced semiconductor packaging and testing, supported by strategic partnerships with TSMC and NVIDIA, strengthens its long-term prospects. Accelerating AI computing demand, automotive semiconductor growth and improving product mix support its earnings outlook. Liquidity of $3.6 billion provides financial flexibility. However, Communications weakness, memory supply constraints and manufacturing transitions present near-term challenges. Substantial capital expenditures and debt obligations could pressure cash flows, while competition from established packaging providers and semiconductor manufacturers remains intense. Despite attractive valuation and expanding advanced-packaging opportunities, sustained profitability will depend on successful capacity ramp-ups, cost management and customer demand. Amkor Technology offers promising growth opportunities from AI infrastructure, advanced packaging and automotive semiconductor demand, supported by improving margins and strategic partnerships. Its attractive valuation strengthens the investment case. Nevertheless, Communications weakness, manufacturing transition risks and elevated capital spending warrant caution. Given these competing factors, holding AMKR stock appears prudent ahead of third-quarter earnings. Existing investors may retain their positions, while prospective investors could await greater clarity on operating performance, cash generation and management's outlook before initiating new positions. You can see the complete list of today's Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amkor Technology, Inc. (AMKR) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Ambarella, Inc. (AMBA) : Free Stock Analysis Report GlobalFoundries Inc. (GFS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Wall Street analysts forecast that Amkor Technology (AMKR) will report quarterly earnings of $0.79 per share in its upcoming release, pointing to a year-over-year increase of 54.9%. It is anticipated that revenues will amount to $2.02 billion, exhibiting an increase of 1.5% compared to the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe. Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock. While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding. That said, let's delve into the average estimates of some Amkor Technology metrics that Wall Street analysts commonly model and monitor. Analysts' assessment points toward 'End Market Distribution Data- Communications (smartphones, tablets)' reaching 36.0%. Compared to the present estimate, the company reported 51.0% in the same quarter last year. The average prediction of analysts places 'End Market Distribution Data- Consumer (AR & gaming, connected home, home electronics, wearables)' at 15.1%. The estimate compares to the year-ago value of 14.0%. Analysts expect 'End Market Distribution Data- Automotive, industrial and other (ADAS, electrification, infotainment, safety)' to come in at 24.4%. The estimate is in contrast to the year-ago figure of 16.0%. It is projected by analysts that the 'End Market Distribution Data- Computing (data center, infrastructure, PC/laptop, storage)' will reach 24.4%. Compared to the present estimate, the company reported 19.0% in the same quarter last year. View all Key Company Metrics for Amkor Technology here>>> Shares of Amkor Technology have demonstrated returns of -23.6% over the past month compared to the Zacks S&P 500 composite's +1% change. With a Zacks Rank #3 (Hold), AMKR is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> . Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amkor Technology, Inc. (AMKR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Amkor Technology stock has almost doubled over the past year, yet on broad valuation checks it still screens as relatively cheap. This raises a clear question about how much of the recent optimism is already reflected in the price. Over the past 12 months Amkor Technology has returned 99.6%, which puts recent enthusiasm in sharp contrast with where traditional valuation measures still place the stock. Interest in advanced semiconductor packaging, highlighted by recent commentary from Bank of America, can support expectations for Amkor Technology. However, any slowdown or misstep in high performance computing and AI related demand would quickly feed back into how investors value the stock. Amkor Technology currently scores 6 out of 6 on a broad set of value checks, which suggests the stock looks undervalued on these measures even after a strong share price run. The issue now is whether Amkor Technology’s current share price still leaves enough value appeal after such a strong 1 year performance. Scan how other semiconductor and AI-exposed stocks stack up on valuation by lining up Amkor Technology against the hand picked 56 AI infrastructure stocks. P/E is a useful cross-check for Amkor Technology because earnings are a direct output of its packaging and testing capacity and pricing power. On this measure, the stock trades on a P/E of 21.4x, which is less than half the wider semiconductor industry average of 46.0x and well below the peer group average of 62.4x. The tailored fair P/E ratio for Amkor Technology is 37.1x, which reflects what investors might typically pay given its sector, profitability profile and risk. The current 21.4x level is far under that fair ratio, which leaves a wide valuation gap even after the strong share price move. Despite recent attention around advanced packaging potential, the market multiple still does not match either the sector averages or this fair value benchmark. On a P/E basis, Amkor Technology stock appears undervalued compared with both its industry and a more tailored fair multiple. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Amkor Technology pick up where this valuation puzzle leaves off and explain what kind of future growth, margins and earnings path would need to occur for the stock to be worth meaningfully more or less than it is today. Each narrative links its number to a specific view on how Amkor Technology's growth potential, profitability and risks might evolve, which you can revisit on the Community page as fresh information becomes available. One of the top community narratives on Amkor Technology: 26% undervalued Read one of the top narratives on Amkor Technology Do you think there's more to the story for Amkor Technology? Head over to our Community to see what others are saying! Amkor Technology still screens as undervalued on market multiples, even after a strong 1 year run, which suggests investors are not paying up in line with sector averages. The key question is whether earnings from advanced packaging and AI related demand can support a further re rating without a stumble in orders or execution. For now, the valuation case hinges less on spotting hidden value and more on whether Amkor Technology can convert current interest into durable profitability that justifies a higher multiple. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include AMKR. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

It has been about a month since the last earnings report for FormFactor (FORM). Shares have added about 4.6% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is FormFactor due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for FormFactor, Inc. before we dive into how investors and analysts have reacted as of late. FormFactor delivered second-quarter 2026 non-GAAP earnings of 82 cents per share, up 203.7% year over year, and beat the Zacks Consensus Estimate by 34.43%.Revenues increased 32% year over year to $258.2 million and surpassed the consensus mark of $240 million by 7.55%. Broad demand across high-bandwidth memory, foundry and logic, and co-packaged optics helped FORM post record revenues. Probe Card revenues reached $209.7 million, increasing 29.4% year over year. The segment benefited from rising test intensity across advanced memory and high-performance computing applications.Foundry and Logic revenues increased 22.4% year over year to $121.8 million. Growth was led by probe cards for data-center CPU applications, alongside continued networking strength, early momentum in hyperscaler custom ASICs and steady PC and mobile demand.Management expects further sequential growth in the third quarter, supported by broad demand across its served applications. FORM is also shipping production units for a newly qualified GPU program, which is expected to begin contributing revenues in the second half of 2026. DRAM revenues jumped 48.9% year over year to $85 million. High-bandwidth memory accounted for approximately two-thirds of DRAM sales, driven by two customers adopting the company’s SmartMatrix full-wafer contactor technology for high-speed HBM4 testing.SmartMatrix allows customers to test hundreds of completed HBM stacks simultaneously at data rates exceeding 10 gigabits per second. This capability helps verify that HBM stacks are functional before they are combined with expensive GPUs or custom ASICs in advanced packaging.Third-quarter DRAM revenues are expected to remain comparable with the second-quarter record. However, management anticipates a significant mix shift from HBM toward DDR as memory manufacturers adjust wafer production to capitalize on higher DDR pricing. Systems revenues increased 43.9% year over year to a record $48.5 million. Sales also rose sharply from $27.9 million in the prior quarter, reflecting a recovery in the engineering prober business and accelerating demand for co-packaged optics.FORM now expects 2026 co-packaged optics revenues to exceed $20 million, surpassing its previous projection of reaching the high end of a $10-$20 million range. The company expects cumulative CPO revenues to cross $20 million by the end of the third quarter, followed by additional contributions in the fourth quarter. Non-GAAP gross margin expanded to 53.3% compared with 38.5% reported in the year-ago quarter. Non-GAAP operating expenses were $65.7 million, up 25.1% year over year.Non-GAAP operating income rose to $72 million from $22.8 million a year earlier. As of June 27, 2026, cash and cash equivalents and marketable securities were $345.6 million compared with $303.2 million as of March 28, 2026. Cash provided by operating activities was $61.8 million, up from $18.9 million in the year-ago period. Free cash flow totaled $52.6 million compared with a free cash outflow of $47.1 million reported in the year-ago quarter.FORM continues to expect 2026 cash capital expenditures of $140-$170 million, primarily supporting its Farmers Branch manufacturing expansion. The new facility remains on track to begin ramping in the fourth quarter and continue through 2027. Its initial capacity is expected to be roughly equivalent to the company’s current California probe-card manufacturing footprint. For the third quarter of 2026, FormFactor expects revenues of $270 million (plus or minus $10 million). At the midpoint, this implies continued sequential growth and another quarterly revenue record.Non-GAAP gross margin is projected at 54% (plus or minus 150 bps). The margin outlook includes an anticipated $7-$9 million benefit from tariff refunds, partly offset by a less favorable DRAM product mix. Non-GAAP earnings are expected at 86 cents per share (plus or minus 9 cents). In the past month, investors have witnessed a upward trend in estimates review. The consensus estimate has shifted 52.16% due to these changes. Currently, FormFactor has a great Growth Score of A, a score with the same score on the momentum front. However, the stock was allocated a score of F on the value side, putting it in the fifth quintile for value investors. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise FormFactor has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months. FormFactor belongs to the Zacks Electronics - Semiconductors industry. Another stock from the same industry, Amkor Technology (AMKR), has gained 7.2% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Amkor Technology reported revenues of $1.9 billion in the last reported quarter, representing a year-over-year change of +25.6%. EPS of $0.70 for the same period compares with $0.22 a year ago. For the current quarter, Amkor Technology is expected to post earnings of $0.79 per share, indicating a change of +54.9% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #1 (Strong Buy) for Amkor Technology. Also, the stock has a VGM Score of C. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report FormFactor, Inc. (FORM) : Free Stock Analysis Report Amkor Technology, Inc. (AMKR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

It has been about a month since the last earnings report for Amkor Technology (AMKR). Shares have added about 6.6% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Amkor Technology due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Amkor Technology, Inc. before we dive into how investors and analysts have reacted as of late. Amkor Technology reported second-quarter 2026 earnings of 70 cents per share, beating the Zacks Consensus Estimate by 48.94%. The company reported earnings of 22 cents per share in the year-ago quarter.Net sales of $1.89 billion surpassed the Zacks Consensus Estimate by 5.27%. The figure increased 25.58% year over year. The quarter's performance reflected record revenues in the Computing and Automotive and Industrial end markets, along with continued strength across the advanced packaging portfolio. Amkor's second-quarter 2026 revenue mix continued to skew toward higher value work. Advanced products totaled $1.557 billion, up 26.79% year over year, reflecting strong customer engagement across leading-edge packaging platforms. Mainstream products contributed $341 million, up 20.49% year over year, supported by the fifth consecutive quarter of year-over-year mainstream growth.Packaging comprised 88% of second-quarter 2026 sales, in line with the year-ago period, and test services accounted for 12%. Net sales from the top 10 customers represented 66% in the second quarter of 2026 compared with 72% in the second quarter of 2025. In the second quarter, Communications revenues grew approximately 32% year over year, aided by double-digit growth in the iOS ecosystem even as Android softness stemming from memory supply constraints partly offset the gain.Computing revenues rose approximately 26% year over year, hitting a record quarterly level on the back of broad-based data center demand and the ramp of the company's newest HDFO CPU program.Automotive and Industrial revenues advanced approximately 38% year over year to a record quarterly level, driven by strong ADAS demand and increasing semiconductor content in next-generation vehicle platforms.Consumer revenues declined approximately 2% year over year even as sequential demand improved on broad-based IoT strength across customers. Profitability improved sharply from the year-ago period. Gross profit was $318.6 million, up 75.15% year over year, and gross margin expanded to 16.8%, up roughly 480 basis points year over year.Operating income reached $199.9 million, more than double the $92 million reported in the year-ago quarter. Operating margin was 10.5%, up roughly 440 basis points year over year, reflecting higher factory utilization and a richer product mix.Net income attributable to Amkor was $173.8 million compared with $54.4 million in the year-ago quarter. EBITDA was $400 million versus $259 million a year earlier. Amkor's liquidity position strengthened sequentially. As of June 30, 2026, total cash and short-term investments stood at $2.5 billion, up from $1.8 billion at the end of the first quarter, while total debt rose to $2.486 billion from $1.4 billion, following the issuance of $1.15 billion in convertible notes in May. Total liquidity was $3.6 billion, up from $2.9 billion in the prior quarter, and the debt-to-EBITDA ratio was 1.8X compared with 1.1X in the first quarter.For the six months ended June 30, 2026, net cash provided by operating activities was $381.6 million, implying approximately $236.5 million was generated in the second quarter alone, up from $145.1 million in the first quarter. Capital expenditures for the six-month period totaled $688.4 million, implying approximately $463.8 million was invested in the second quarter, up from $224.6 million in the first quarter, consistent with the ongoing Arizona and Asia footprint expansion. For the third quarter of 2026, AMKR expects net sales of $1.95-$2.05 billion and a gross margin of 18.5-19.5%. Net income is expected to be $180-$205 million, with diluted EPS between 72 cents and 82 cents.Full-year 2026 capital expenditures remain projected at approximately $2.5-$3 billion, with roughly 65% to 70% allocated to facilities expansion, including Phase 1 of the Arizona campus and 30% to 35% allocated to HDFO, test and other advanced packaging capacity.Operationally, management pointed to accelerating Computing growth of nearly 30% sequentially in the third quarter, driven by AI data center demand and the continued ramp of the HDFO CPU program, partly offset by a high single-digit sequential decline in Communications tied to the planned SiP transition from Korea to Vietnam and ongoing memory supply constraints. Recently announced 10-year and multi-year strategic partnerships with TSMC and NVIDIA were highlighted as reinforcing the company's long-term advanced packaging growth trajectory. In the past month, investors have witnessed a upward trend in estimates review. The consensus estimate has shifted 28.11% due to these changes. At this time, Amkor Technology has a average Growth Score of C, a score with the same score on the momentum front. Charting a somewhat similar path, the stock has a score of B on the value side, putting it in the top 40% for this investment strategy. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Amkor Technology has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amkor Technology, Inc. (AMKR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. Amkor Technology stock has delivered strong long term returns over the past five years, yet current checks suggest the market price may still sit below an estimate of intrinsic value based on a Discounted Cash Flow (DCF) approach and earnings multiples. Amkor Technology has returned 153.7% over five years, which puts the recent pullback into context for longer term holders. The expanded advanced packaging work with partners such as Nvidia can support expectations for future cash flows. At the same time, any shift in demand for communications related chip packaging or a potential partial sale of the China operations may affect how reliable those cash flows look. The broader valuation checks lean cheap, with Amkor Technology screening as undervalued on 6 of 6 metrics relative to the current share price. For investors, the debate is whether Amkor Technology’s current discount to intrinsic value offers enough compensation for the business and execution risks around its growth plans. Amkor Technology delivered 150.4% returns over the last year. See how this stacks up to the rest of the Semiconductor industry. The Discounted Cash Flow (DCF) model here uses projected free cash flows to estimate what Amkor Technology might be worth today. On this view, the latest twelve month free cash flow of about $158.4 million is assumed to grow, with the 2 Stage Free Cash Flow to Equity approach pointing to an intrinsic value of about $99 per share. This compares to a current share price that sits about 40.6% below that estimate. On this basis, the stock screens as materially undervalued on cash flows. The model leans on rising cash generation over time, so any change in Amkor Technology’s advanced packaging pipeline or capital spending plans would matter for this valuation. The recent report that Amkor Technology is weighing a partial sale of its China operations helps explain why the market price may still sit below the cash flow based estimate, since investors need clarity on the long term impact on free cash flow. On this DCF view, Amkor Technology stock currently looks undervalued relative to the cash flows analysts expect it to produce. Our Discounted Cash Flow (DCF) analysis suggests Amkor Technology is undervalued by 40.6%. Track this in your watchlist or portfolio, or discover 50 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Amkor Technology. The P/E ratio is a useful metric for Amkor Technology because earnings remain a key reference point for how the market prices established semiconductor packaging businesses. Amkor Technology currently trades on a P/E of about 26.4x, which is below the Semiconductor industry average of about 53.1x and also below the peer group average of about 77.2x. A fair P/E ratio for Amkor Technology, based on its size, industry, margins and risk profile, is estimated at about 36.8x. This is materially higher than the present 26.4x multiple. According to this framework, the current level points to the stock trading at a discount. The gap indicates that the market is applying a lower earnings multiple to Amkor Technology than both the tailored fair value reference and broad sector benchmarks. On the P/E yardstick, Amkor Technology stock appears undervalued relative to both its modelled fair multiple and wider Semiconductor peers. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Amkor Technology pick up where this valuation puzzle leaves off and set out what growth, margin and earnings paths would need to play out for the stock to be worth materially more or less than today’s price on the Community page. Rather than relying on a single multiple or model, each narrative presents the assumptions behind its fair value view so you can compare them with Amkor Technology's actual results as they are reported. One of the top community narratives on Amkor Technology: 9% undervalued Read one of the top narratives on Amkor Technology Do you think there's more to the story for Amkor Technology? Head over to our Community to see what others are saying! Amkor Technology screens as undervalued on both the Discounted Cash Flow (DCF) intrinsic value estimate and the current P/E multiple, so the valuation work is pointing in the same direction. The gap looks tied less to the models and more to how investors weigh execution risks around advanced packaging demand and any changes to the China operations. The crux from here is whether Amkor Technology can deliver the cash flows and margins implied in those models without a meaningful reset to its growth plans. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include AMKR. 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Nvidia (NASDAQ:NVDA) is heading into its August 26 earnings date with fresh evidence that AI infrastructure spending is still accelerating. On July 23, Amkor Technology (NASDAQ:AMKR) announced a multi-year, $1.5 billion agreement with Nvidia to expand advanced chip packaging and test capacity in the US, news that sent Amkor shares up about 15% in late trading and added another data point to a stock that has already been on the move. Under the deal, Nvidia will make a prepayment to help Amkor expand its US advanced packaging operations, including capacity in Arizona, and the two companies will jointly develop packaging and testing technologies for Nvidia's AI and accelerated-computing platforms, with a focus on combining different chip types inside a single package. Amkor already handles advanced packaging for Nvidia's data center processors, so the agreement deepens an existing relationship rather than starting a new one, and it lands weeks after Amkor struck a separate 10-year partnership with TSMC in June to build out US packaging capabilities. The bullish significance of the Amkor deal is that Nvidia is securing advanced packaging and testing capacity before the next wave of AI demand arrives. On August 5, the stock jumped as much as 4.9% after SpaceX, reporting its first earnings as a public company, revealed it will build its AI systems exclusively on Nvidia GPUs using the Vera Rubin architecture, with Elon Musk saying SpaceX expects to receive "a very significant percentage" of Nvidia's GPU output next year. SpaceX is targeting more than 2 gigawatts of compute capacity by the end of 2026 and 10 gigawatts by the end of 2027. That news arrived alongside a broader pattern of heavy AI capex commitments from hyperscalers including Alphabet, Meta Platforms, Amazon, Microsoft and Oracle, all of which have already reported results ahead of Nvidia's own print. None of this changes the fact that Nvidia's stock has a history of choppy reactions to its own earnings. Shares peaked above $220 after a prior release, then sold off for weeks and now trade near $207, a pattern that has repeated across the last several quarters even as the longer-term trend stayed upward. Wall Street consensus calls for fiscal second-quarter revenue of roughly $91.8 billion and EPS around $2.08, both modestly above management's own guidance of about $91 billion in revenue, plus or minus 2%, and gross margins near 75%. If the report merely meets those numbers rather than beating them convincingly, the stock has tended to give back its pre-earnings gains in the one to three months that follow. The Amkor agreement itself is also not exclusive to Nvidia. Amkor is separately packaging chips for Advanced Micro Devices, and its new TSMC partnership serves the broader industry, so the deal secures supply rather than locking out competitors. Hedge fund ownership rose from 264 funds to 275 in the most recent quarter, a sign institutional conviction is building rather than fading. Short interest is just 1.39% of float, about as light as organized skepticism gets. As of August 5, Nvidia trades at a forward price-to-earnings ratio of 22.88, a multiple that assumes continued growth but is not extreme for a company still expanding revenue this fast. Rising fund ownership paired with almost no short interest suggests the market has largely made up its mind, at least until the next print. The Amkor agreement gives Nvidia more packaging capacity right as SpaceX and the major hyperscalers keep signaling they will keep spending on AI infrastructure. But Nvidia's own earnings history shows that strong demand signals do not guarantee a smooth stock reaction once the company reports its numbers. The August 26 print will show whether $91.8 billion in consensus revenue undersells what deals like this one are building toward, or whether the market has already priced in everything Nvidia is likely to say. While we acknowledge the potential of NVDA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best Future Stocks to Buy Under $10 and 12 Best Performing Semiconductor Stocks to Invest In. Disclosure: None. Follow Insider Monkey on Google News.

Amkor’s second quarter was characterized by broad-based growth across all major end markets, but the market’s negative reaction reflected concerns about the sustainability of this momentum. Management attributed the quarter’s strong performance to high utilization rates, especially in advanced packaging and mainstream products, as well as deepening partnerships with technology leaders. CEO Kevin Engel highlighted, “Both Advanced and Mainstream revenue increased year-on-year, with Mainstream achieving its fifth consecutive quarter of year-on-year growth,” and pointed to computing and automotive industrial markets as standouts. Strength in the iOS ecosystem and improved consumer demand also played a role, while utilization rates climbed into the 70% range across Amkor’s manufacturing network. Is now the time to buy AMKR? Find out in our full research report (it’s free). Revenue: $1.90 billion vs analyst estimates of $1.82 billion (25.6% year-on-year growth, 4.5% beat) Adjusted EPS: $0.70 vs analyst estimates of $0.48 (45.4% beat) Adjusted EBITDA: $400 million vs analyst estimates of $330.8 million (21.1% margin, 20.9% beat) Revenue Guidance for Q3 CY2026 is $2 billion at the midpoint, below analyst estimates of $2.09 billion Operating Margin: 10.5%, up from 6.1% in the same quarter last year Inventory Days Outstanding: 32, up from 31 in the previous quarter Market Capitalization: $12.39 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Randy Abrams (UBS) asked about the duration of the SiP transition impact, to which CEO Kevin Engel replied that timing headwinds will last into the first half of next year and are not limited to a single quarter. Craig Ellis (B. Riley Securities) sought clarity on whether the SiP move benefited Q2 communications results. Engel said there was no significant Q2 benefit from the transition and expects only modest improvement in communications going forward. Craig Ellis (B. Riley Securities) also questioned the implications of the NVIDIA partnership for R&D and financials. Engel explained that R&D spending as a percent of capital would remain consistent, and prepayment structures tied to the NVIDIA deal would largely affect financials starting in 2027. Ben Reitzes (Melius Research) probed the drivers of margin expansion, and CFO Megan Faust attributed two-thirds of margin gains to utilization and one-third to product mix, with Q3 margin expansion expected to be primarily mix-driven. Steve Barger (KeyBanc Capital Markets) inquired about the sustainability of gross margin trends into the year, with Engel and Faust highlighting that mix and utilization will remain the main factors, and headwinds from underutilized new U.S. capacity are expected in the longer term. In the coming quarters, the StockStory team will focus on (1) the pace and profitability of the computing segment’s ramp, especially as AI and data center demand grows, (2) execution on the SiP transition to Vietnam and its effect on communications revenue, and (3) the successful rollout and customer uptake of advanced packaging solutions linked to new partnerships with TSMC and NVIDIA. Progress in automotive and industrial end markets will also be a key marker of Amkor’s execution. Amkor currently trades at $49.30, down from $60.71 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free for active Edge members). WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

Amkor Technology (AMKR) reported its second-quarter results on July 27. By almost every measure, the quarter was a record. Revenue reached $1.90 billion, up roughly 26% from a year earlier. The company beat the high end of its own guidance. Earnings of $0.70 a share came in far ahead of the $0.48 that analysts expected. EBITDA of $400 million also comfortably beat the estimates. The growth came from computing and the automotive and industrial markets. Both of these achieved quarterly records on AI data center demand. Margins also widened for a clear reason. Over the past two quarters, average factory utilization climbed from the 50s into the 70s, with several platforms now even running at full capacity. Despite such a strong performance, the stock fell 6.54% after the report. The reason was the outlook, not the quarter. Amkor guided third-quarter revenue to about $2 billion at the midpoint, just below Wall Street’s $2.09 billion consensus. The outlook had another weak spot. Communications revenue is set to fall in the next quarter, with Android sales already down 20% due to memory supply constraints. The stock had more than doubled since late March, hitting a 52-week high of $96.68 on June 22. At that level, expectations were high enough that a soft guidance number was all it took. Billionaire Charlie Munger Said Your First $100K Is the Key to Getting Rich — ‘I Don’t Care What You Have to Do ... Find a Way.’ Then You Can 'Ease Off the Gas a Little.' Why This Analyst Is Betting AMD Stock Can Hit $1,250 in the Next Year A $7 Billion Reason to Buy Oracle Stock Now Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. While the guidance miss has got the investors worried, Amkor’s direction looks promising. Computing revenue is expected to jump nearly 30% next quarter as an AI data center CPU program ramps. Amkor signed a 10-year packaging agreement with TSMC (TSM) and a multi-year partnership with Nvidia (NVDA) during the first half. The company is also maintaining its 2026 capital spending plan of $2.5 billion to $3 billion, including the first phase of its Arizona campus. CEO Kevin Engel said the moves should strengthen Amkor’s competitive position and earnings power. The market wanted more from the guidance. The business is still accelerating into the demand everyone is chasing. Amkor is a Tempe, Arizona-based company that offers outsourced semiconductor packaging and testing services. The company’s solutions support chips used across networking, smartphones, consumer electronics, automotive, AI, and data center applications. It serves major semiconductor manufacturers and foundries worldwide. Amkor Technology significantly outperformed the broader semiconductor sector over the past year. The stock has generated gains of 116%, while the iShares Semiconductor ETF (SOXX) posted returns of 101% over the same period. The strong gains were supported by optimism around its long-term growth strategy, growing AI packaging demand, and better-than-expected earnings. These factors helped the company outperform even during a strong year for the semiconductor sector. Amkor’s valuation reflects the distance the stock has run. The forward GAAP price-to-earnings ratio of 28.14 times sits 61.52% above its 5-year average of 17.42 times. The forward price-to-sales ratio of 1.96 times is also 77.63% above its own average of 1.11 times. This is not a cheap stock by any means. Both measures suggest Amkor is trading at a significant premium to its historical norms. The EPS growth trajectory offers some justification. Analysts expect growth of 38.67% in 2026, which explains why investors are willing to pay a higher price for the stock. The growth is then expected to slow down but remain at a healthy 17% to 22% in the next two years. The balance sheet also strengthens Amkor’s valuation. The company holds $1.85 billion in cash against $1.62 billion in debt. So even as the company spends heavily on new capacity, it still remains net cash positive. That gives it the flexibility needed to fund the Arizona campus and its other expansions. The valuation is demanding, but it is attached to a business growing into AI packaging demand. For investors, the real question is whether the growth can keep pace with what the price already assumes. UBS analyst Randy Abrams raised Amkor Technology’s price target from $80 to $90 while also upgrading the rating from “Neutral” to “Buy.” An identical estimate can be seen from Needham analyst Charles Shi as well, who has set Amkor’s price target at $90 while maintaining a “Buy” rating. The stock currently holds a consensus “Moderate Buy” rating from 10 Wall Street analysts covering it. Their median price target of $75.75 reflects a 63.7% upside from the current share price. The most bullish estimate of $90 implies an additional 94.5% upside from here. On the date of publication, Jabran Kundi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com