Joseph Moore, an analyst from Morgan Stanley, maintained the Hold rating on Amkor. The associated price target is $20.00.
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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 for the June and September quarters exceeded expectations, driven by strong performance in consumer and computing sectors. Additionally, the company reported record quarterly compute revenue and anticipates a robust pipeline extending into 2026, with plans to expand capacity to meet the growing demand.
However, Moore also highlighted concerns regarding Amkor’s gross margin, which remains a significant issue. The September quarter guidance for gross margin was notably below expectations, attributed to an unfavorable product mix, underutilization in Japan, and customer qualification costs in Vietnam. The company’s material costs are expected to increase, impacting profitability, especially for advanced SiP products. These mixed results lead to a Hold rating, as the potential for revenue growth is tempered by ongoing margin challenges.