Amkor Technology stock initiated at Buy by Aletheia Capital with $62 target

Investing.com - Aletheia Capital initiated coverage on Amkor Technology (NASDAQ:AMKR) with a Buy rating and a $62.00 price target on Monday. This target represents significant upside potential from the current price of $36.71, though InvestingPro data indicates the stock is already trading above its Fair Value estimate.

The research firm cited Amkor’s position as a leading U.S.-based OSAT (Outsourced Semiconductor Assembly and Test) provider, highlighting two major tailwinds: increasing demand for CoWoS (Chip-on-Wafer-on-Substrate) packaging and the America Manufacturing initiative. The stock has shown remarkable momentum, with a 79.34% price return over the past six months.

Aletheia Capital expects Amkor to expand its existing overflow Hopper GPU packaging business with NVIDIA by capturing first-source CoWoS opportunities, including GB10, Vera, and B30, while also winning Broadcom’s TPU V6 and V7 ASIC slots in 2026. Despite these growth prospects, InvestingPro data reveals Amkor operates with weak gross profit margins of 13.5% and has a relatively high P/E ratio of 29.55.

The firm noted Amkor is constructing a $7 billion advanced packaging facility in Arizona scheduled to begin operations in 2028, which has reportedly attracted strategic investment from key customers.

Aletheia Capital forecasts Amkor’s CoWoS sales to grow 2.5 times in fiscal year 2026 and an additional 50% in fiscal year 2027, resulting in earnings per share growing at a 65% compound annual growth rate from fiscal years 2025 to 2027.

In other recent news, Amkor Technology reported impressive earnings results for the third quarter of 2025. The company achieved earnings per share of $0.51, surpassing analyst forecasts of $0.43. Additionally, Amkor Technology’s revenue reached $1.99 billion, exceeding the expected $1.93 billion. Despite these strong financial results, the company’s stock experienced a slight decline in after-hours trading. In another development, John Liu resigned from Amkor Technology’s board of directors on October 28. The company clarified that Liu’s resignation was not due to any disagreements over its operations, policies, or practices. Following his departure, the board was reduced from eleven to ten members. These updates reflect the latest developments at Amkor Technology.

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