Update shared on11 Sep 2025
Fair value Increased 2.05%Analysts have modestly raised Amkor Technology’s price target to $24.88, reflecting stronger revenue growth expectations and robust performance in the communications segment, partially offset by ongoing margin pressures.
Analyst Commentary
- Bullish analysts cited Amkor's strong revenue growth and beat-and-raise quarter, indicating positive momentum in core operations.
- Communications segment is expected to deliver strong double-digit sequential revenue growth, supporting a positive demand outlook.
- Some guidance blemish remains around gross margin, with continued weakness due to Vietnam ramp and unfavorable material/product mix.
- Margins are still susceptible to operational transitions and evolving product mix, partially offsetting revenue strength.
- Overall outlook reflects confidence in business execution, with most adjustments driven by improving topline versus lingering cost and margin pressures.
What's in the News
- Nvidia asked Amkor to halt production related to its H20 AI chip after Chinese officials directed local companies to avoid the product over security concerns. (The Information)
- Amkor Technology is involved in a major expansion in Peoria, Arizona, where a 104-acre site has been designated for a new advanced semiconductor packaging and test facility, pending final city council approval. (Key Developments)
- UBS raised its price target for Amkor Technology shares to $25 from $23, maintaining a Buy rating. (UBS)
- Amkor issued Q3 2025 guidance, forecasting net sales of $1.875–$1.975 billion and net income of $85–$120 million ($0.34–$0.48 per diluted share). (Key Developments)
- The Chinese government's restrictions on Nvidia's H20 chip, which involve Amkor as a supplier, may impact Amkor's business with Nvidia. (The Information)
Valuation Changes
Summary of Valuation Changes for Amkor Technology
- The Consensus Analyst Price Target has risen slightly from $24.38 to $24.88.
- The Consensus Revenue Growth forecasts for Amkor Technology has risen slightly from 7.0% per annum to 7.4% per annum.
- The Net Profit Margin for Amkor Technology remained effectively unchanged, moving only marginally from 7.34% to 7.42%.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.