Amkor’s Mixed Outlook: Strong Revenue and Strategic Gains Offset by Margin Concerns and Market Uncertainty

Analyst Joseph Moore from Morgan Stanley maintained a Hold rating on Amkor (AMKR – Research Report) and decreased the price target to $19.00 from $24.00.

Joseph Moore’s rating is based on a combination of factors that present both positive and negative aspects for Amkor. On the positive side, Amkor’s revenue exceeded expectations, driven by strong performance in the communications sector, particularly smartphones, and a recovery in the automotive and industrial markets. Additionally, the company is making strides in the advanced driver-assistance systems (ADAS) sector and is set to regain production for Apple’s 2025 models, which could enhance its market share.
However, there are concerns that temper this optimism. Amkor’s gross margin for the June quarter was lower than anticipated, and the company does not expect significant improvement in the near term. Furthermore, the overall market outlook for the second half of the year is heavily dependent on macroeconomic conditions, leading to a conservative estimate of a 2% year-over-year decline. This uncertainty, coupled with the volatility of order trends in the outsourced semiconductor assembly and test (OSAT) sector, supports the decision to maintain a Hold rating.

According to TipRanks, Moore is a 5-star analyst with an average return of 10.3% and a 52.42% success rate. Moore covers the Technology sector, focusing on stocks such as Nvidia, NXP Semiconductors, and Intel.