Amkor (AMKR) AI Stock Analysis

• Market Cap: $5.72B
• Dividend Yield: 3.17%
• Average Volume (3M): 2.18M
• Price to Earnings (P/E): 18.9
• Beta (1Y): 2.10
• Revenue Growth: -1.20%
• EPS Growth: -19.46%
• Country: US
• Employees: 28,300
• Sector: Technology
• Sector Strength: 98
• Industry: Semiconductors
• EPS (TTM): 0.22
• Shares Outstanding: 247,143,050
• 10 Day Avg. Volume: 3,632,593
• 30 Day Avg. Volume: 2,179,586
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.86
• Enterprise Value/Revenue: 0.77
• Enterprise Value/Gross Profit: 5.70
• Enterprise Value/Ebitda: 6.51
• 1Y Price Target: $24.88
• Price Target Upside: 7.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 77 Outperform
• Price Target: $25.00 ▲(7.99% Upside)

Amkor's strong earnings call performance and technical indicators are key strengths, with a solid financial foundation supporting the positive outlook. Valuation metrics suggest moderate growth expectations, and while revenue growth challenges exist, strategic advancements and financial flexibility provide a favorable long-term view.

Positive Factors

Market Positioning

Amkor is poised to benefit from the semiconductor recovery and is well-positioned to outpace industry growth driven by its differentiated advanced technology/IP portfolio and geographical positioning.

Product Development

Amkor expects a second-half recovery driven by ADAS and infotainment applications in the automotive sector.

Revenue Growth

Amkor's revenue exceeded expectations due to strong performance in the consumer, computing, and communications sectors, particularly smartphones.

Negative Factors

Gross Margin Concerns

Gross margin remains a concern for Amkor, as the guidance was significantly below expectations due to unfavorable product mix and underutilization in certain regions.

Market Volatility

Order trends in the outsourced semiconductor assembly and test sector can be very volatile, often heavily influenced by major customer forecasts and end-market conditions.

Tariff and Supply Chain Impact

Tariffs could have an impact on the downstream supply chain, which ships electronics into the U.S., and could also be felt by Amkor.

Amkor Business Overview & Revenue Model

Company Description

Amkor Technology, Inc. provides outsourced semiconductor packaging and test services in the United States, Japan, Europe, the Middle East, Africa, and the rest of the Asia Pacific. It offers turnkey packaging and test services, including semiconductor wafer bump, wafer probe, wafer back-grind, package design, packaging, and test and drop shipment services. The company also provides flip chip-scale package products for use in smartphones, tablets, and other mobile consumer electronic devices; flip-chip stacked chip-scale packages that are used to stack memory on top of digital baseband, and as applications processors in mobile devices; and flip-chip ball grid array packages for various networking, storage, computing, and consumer applications. In addition, it offers wafer-level CSP packages that are used in power management, transceivers, sensors, wireless charging, codecs, radar, and specialty silicon; wafer-level fan-out packages for use in ICs; and silicon wafer integrated fan-out technology, which replaces a laminate substrate with a thinner structure. Further, the company provides lead frame packages that are used in electronic devices for low to medium pin count analog and mixed-signal applications; substrate-based wirebond packages, which are used to connect a die to a substrate; micro-electro-mechanical systems (MEMS) packages that are miniaturized mechanical and electromechanical devices; and advanced system-in-package modules, which are used in radio frequency and front end modules, basebands, connectivity, fingerprint sensors, display and touch screen drivers, sensors and MEMS, and NAND memory and solid-state drives. It primarily serves integrated device manufacturers, fabless semiconductor companies, original equipment manufacturers, and contract foundries. Amkor Technology, Inc. was founded in 1968 and is headquartered in Tempe, Arizona.

How the Company Makes Money

Amkor generates revenue primarily through its semiconductor packaging and testing services. The company operates on a business model that involves charging its clients for the assembly, packaging, and testing of semiconductor chips. Key revenue streams include fees for manufacturing services, which vary based on the complexity and type of packaging required, as well as testing services that ensure the functionality and quality of the semiconductor devices. Amkor has established significant partnerships with major semiconductor manufacturers and fabless companies, allowing it to secure long-term contracts and a steady flow of business. Additionally, the company benefits from increasing demand for advanced packaging solutions as the semiconductor industry evolves, particularly with the growth of 5G technology, the Internet of Things (IoT), and automotive electronics, which further solidifies its earnings potential.

Amkor Financial Statement Overview

Summary

Amkor demonstrates solid financial health with a stable balance sheet, excellent cash flow management, and operational efficiency. However, challenges in revenue growth and profitability pressures slightly impact its score.

Income Statement

Amkor's TTM revenue has seen a slight decline from the previous annual report, indicating a potential challenge in maintaining sales growth. The gross profit margin stands at 14.17%, and the net profit margin is 5.04%, both reflecting pressures on profitability compared to historical performance. However, the EBITDA margin remains robust at 14.16%, showcasing strong operational efficiency in the semiconductor industry.

Balance Sheet

Amkor's balance sheet is solid with a debt-to-equity ratio of 0.30, suggesting a conservative leverage position. The equity ratio is 60.06%, indicating strong financial stability with a substantial equity base. Return on equity (ROE) of 7.61% shows moderate profitability for shareholders. Overall, the company maintains financial resilience in a highly competitive sector.

Cash Flow

The free cash flow experienced a decline from the previous year, yet the free cash flow to net income ratio of 0.96 shows efficient cash conversion from earnings. Operating cash flow exceeds net income, reflecting strong cash generation capabilities. The investing and financing activities indicate prudent capital management, despite lower free cash flow growth.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.32B	6.50B	7.09B	6.14B	5.05B
Gross Profit	933.21M	943.15M	1.33B	1.23B	900.81M
EBITDA	1.09B	1.13B	1.53B	1.33B	961.25M
Net Income	354.01M	359.81M	765.82M	643.00M	338.14M
Balance Sheet
Total Assets	6.94B	6.77B	6.82B	6.04B	5.02B
Cash, Cash Equivalents and Short-Term Investments	1.65B	1.59B	1.24B	1.08B	831.77M
Total Debt	1.42B	1.35B	1.38B	1.29B	1.24B
Total Liabilities	2.76B	2.78B	3.12B	3.07B	2.67B
Stockholders Equity	4.15B	3.96B	3.67B	2.94B	2.33B
Cash Flow
Free Cash Flow	345.07M	520.55M	190.46M	341.52M	217.01M
Operating Cash Flow	1.09B	1.27B	1.10B	1.12B	770.03M
Investing Cash Flow	-800.32M	-951.91M	-1.01B	-943.88M	-638.71M
Financing Cash Flow	-260.43M	-149.21M	55.60M	-30.10M	-333.72M

Amkor Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMKR, the sentiment is Positive. The current price of 23.15 is above the 20-day moving average (MA) of 22.18, above the 50-day MA of 21.20, and above the 200-day MA of 22.03, indicating a bullish trend. The MACD of 0.48 indicates Negative momentum. The RSI at 58.22 is Neutral, neither overbought nor oversold. The STOCH value of 37.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AMKR.

Amkor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NVDA	82 Outperform	$4.46T	58.85	115.46%	0.02%	86.17%	81.36%
AMKR	77 Outperform	$5.72B	18.89	7.37%	3.17%	-1.20%	-19.46%
UMC	71 Outperform	$17.01B	13.59	10.98%	7.19%	5.46%	-26.72%
ASX	66 Neutral	$21.67B	20.32	10.97%	2.62%	4.86%	6.44%
Sector *	61 Neutral	$35.87B	6.13	-9.30%	2.06%	7.63%	-6.38%
STM	60 Neutral	$22.78B	36.70	3.72%	1.24%	-22.97%	-78.58%
GFS	51 Neutral	$17.85B	28.15	-1.01%	―	-0.65%	-114.26%

Amkor Corporate Events

Amkor Amends Credit Facility with New Term Loans

On June 27, 2025, Amkor Technology, Inc. amended its existing senior revolving credit facility to include a new tranche of term loans, the Term A-1 Loans, amounting to $500 million. These loans will be used to refinance existing debt and for general corporate purposes, with a maturity date set for May 9, 2030. Additionally, the company announced its intention to redeem $125 million of its 6.625% Senior Notes due 2027, with the redemption scheduled for July 30, 2025, leaving $400 million of the notes outstanding.

The most recent analyst rating on (AMKR) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on Amkor stock, see the AMKR Stock Forecast page.

Amkor Elects Board and Approves Key Governance Changes

At the Annual Meeting of Stockholders held on May 15, 2025, Amkor Technology, Inc. successfully elected 11 directors to its Board for a one-year term. Additionally, stockholders approved the compensation of named executive officers, ratified the appointment of PricewaterhouseCoopers LLP as the independent auditor for 2025, and passed an amendment to the company’s Certificate of Incorporation. These decisions reflect the company’s ongoing efforts to maintain strong governance and operational oversight.

The most recent analyst rating on (AMKR) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on Amkor stock, see the AMKR Stock Forecast page.

Amkor Secures New $1 Billion Credit Facility

On May 9, 2025, Amkor Technology, Inc. replaced its existing senior revolving credit facility with a new $1 billion revolving credit facility, secured by a lien on certain subsidiaries’ equity interests. The new facility, which will mature in 2030, includes an optional accordion of up to $200 million and will be used for general corporate purposes. The agreement contains financial covenants, including maintaining specific interest coverage and leverage ratios, and allows for the release of liens upon achieving an Investment Grade Rating. This move is expected to enhance Amkor’s financial flexibility and support its strategic initiatives.

The most recent analyst rating on (AMKR) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on Amkor stock, see the AMKR Stock Forecast page.