Amkor (AMKR) AI Stock Analysis

• Market Cap: $12.03B
• Dividend Yield: 0.81%
• Average Volume (3M): 3.59M
• Price to Earnings (P/E): 39.2
• Beta (1Y): 1.98
• Revenue Growth: 0.13%
• EPS Growth: -16.17%
• Country: US
• Employees: 28,300
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.51
• Shares Outstanding: 247,193,440
• 10 Day Avg. Volume: 4,358,477
• 30 Day Avg. Volume: 3,589,448
• PEG Ratio: -13.06
• Price to Book (P/B): 1.53
• Price to Sales (P/S): 1.00
• P/FCF Ratio: 18.35
• Enterprise Value/Market Cap: 0.62
• Enterprise Value/Revenue: 1.15
• Enterprise Value/Gross Profit: 8.52
• Enterprise Value/Ebitda: 6.76
• 1Y Price Target: $42.88
• Price Target Upside: -11.90% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 1.67
• Revenue Forecast (FY): $7.36B

• Rating: 69 Neutral
• Price Target: $49.00 ▲(0.68% Upside)

The score is driven primarily by stable financials (strong cash generation and manageable leverage) and strong technical momentum (price above key moving averages with positive MACD). These positives are tempered by expensive valuation (high P/E with a low dividend yield) and earnings-call risks including expected sequential Q4 revenue softness and ongoing margin pressure.

Positive Factors

Outsourced packaging business model

Amkor's fee-for-service outsourced packaging and test model, backed by long-term contracts and strategic partnerships, creates durable, recurring revenue streams. This ties Amkor to major semiconductor producers and supports stable demand across evolving end markets over multiple quarters.

Strong cash generation

Robust free cash flow growth and healthy cash conversion give Amkor the flexibility to fund capex, R&D and the Arizona expansion without overrelying on external financing. Consistent cash generation supports operational resilience and long-term investment in advanced packaging capabilities.

Major capacity expansion (Arizona)

The $7bn investment to build an advanced packaging and test campus enhances U.S. capacity and supply-chain resilience. It strengthens Amkor's technology leadership, creates scale advantages in high-growth markets, and forms a long-term strategic moat with customers seeking local capacity.

Negative Factors

Low profitability margins

Relatively low net and gross margins limit free earnings available for reinvestment and shareholder returns. Persistent margin compression increases sensitivity to cost inflation and mix shifts, constraining long-term return on equity and the ability to rapidly scale profitability as revenues climb.

Limited historical revenue growth

Modest top-line growth suggests constrained market share expansion or mix issues despite demand pockets. Slow revenue growth reduces operating leverage benefits and raises pressure on management to drive higher-margin segments to materially improve margins and returns over time.

Higher manufacturing costs & near-term guidance headwinds

Management expects sequential revenue decline and compressed gross margins driven by higher manufacturing costs and product mix. Structural cost pressures and periodic cyclicality in end markets can weigh on sustainable margins and slow the pace at which investments convert into improved profitability.

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 fee-for-service model, charging clients for the design, manufacturing, and testing of semiconductor packages. Key revenue streams include sales of packaging services, testing services, and engineering services. Additionally, Amkor benefits from long-term contracts with major semiconductor manufacturers, which provide a stable revenue base. Strategic partnerships with leading technology firms enhance its market position and drive growth, allowing Amkor to expand its capabilities and service offerings in the fast-evolving semiconductor landscape.

Amkor Financial Statement Overview

Summary

Overall fundamentals are stable, led by strong free cash flow growth (72.13% TTM) and conservative leverage (debt-to-equity 0.39). Offsetting this, profitability is modest with a 4.80% net margin and limited revenue growth (1.98% TTM), indicating margin and growth constraints.

Income Statement

Amkor's income statement shows a moderate performance with a slight revenue growth of 1.98% in the TTM period. The gross profit margin stands at 13.58%, indicating some pressure on cost management. The net profit margin is relatively low at 4.80%, reflecting challenges in translating revenue into profit. EBIT and EBITDA margins are at 7.16% and 16.85%, respectively, suggesting decent operational efficiency but room for improvement in profitability.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.39, indicating a conservative leverage approach. Return on equity is modest at 7.29%, showing limited returns on shareholder investments. The equity ratio is not explicitly calculated but suggests a balanced asset structure. Overall, the company maintains a healthy balance sheet with manageable debt levels.

Cash Flow

Amkor's cash flow statement highlights strong free cash flow growth of 72.13% in the TTM period, a positive indicator of cash generation capabilities. The operating cash flow to net income ratio is 0.51, suggesting efficient cash conversion. The free cash flow to net income ratio of 0.43 indicates a solid ability to generate cash relative to net income, supporting future investments and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.45B	6.32B	6.50B	7.09B	6.14B	5.05B
Gross Profit	870.68M	933.21M	943.15M	1.33B	1.23B	900.81M
EBITDA	1.10B	1.09B	1.13B	1.53B	1.33B	961.25M
Net Income	307.78M	354.01M	359.81M	765.82M	643.00M	338.14M
Balance Sheet
Total Assets	8.19B	6.94B	6.77B	6.82B	6.04B	5.02B
Cash, Cash Equivalents and Short-Term Investments	2.11B	1.65B	1.59B	1.24B	1.08B	831.77M
Total Debt	1.97B	1.42B	1.38B	1.53B	1.37B	1.31B
Total Liabilities	3.84B	2.76B	2.78B	3.12B	3.07B	2.67B
Stockholders Equity	4.31B	4.15B	3.96B	3.67B	2.94B	2.33B
Cash Flow
Free Cash Flow	230.47M	345.07M	520.55M	190.46M	341.52M	217.01M
Operating Cash Flow	988.73M	1.09B	1.27B	1.10B	1.12B	770.03M
Investing Cash Flow	-853.09M	-800.32M	-951.91M	-1.01B	-943.88M	-638.71M
Financing Cash Flow	465.76M	-260.43M	-149.21M	55.60M	-30.10M	-333.72M

Amkor Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 48.67
• 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 48.67 is above the 20-day moving average (MA) of 45.06, above the 50-day MA of 40.46, and above the 200-day MA of 27.21, indicating a bullish trend. The MACD of 3.09 indicates Negative momentum. The RSI at 60.74 is Neutral, neither overbought nor oversold. The STOCH value of 64.23 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
ON	73 Outperform	$24.38B	78.66	3.87%	―	-16.13%	-81.06%
AMKR	69 Neutral	$12.03B	39.22	7.27%	0.81%	0.13%	-16.17%
ASX	69 Neutral	$40.72B	36.34	11.17%	2.29%	8.01%	10.41%
UMC	69 Neutral	$21.54B	17.04	10.97%	6.06%	5.87%	-20.93%
GFS	63 Neutral	$22.98B	-497.96	-0.38%	―	0.25%	-106.22%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
STM	60 Neutral	$25.00B	49.02	3.00%	1.28%	-17.33%	-76.71%

Amkor Corporate Events

John Liu Resigns from Amkor Board, Transitioning Roles

On October 28, 2025, John Liu resigned from Amkor Technology, Inc.’s Board of Directors, with no disagreements cited regarding company operations or policies. Following his resignation, the Board reduced its size from eleven to ten members. Liu will transition to the role of Executive Vice President, Corporate Development and Strategy on November 3, 2025.

The most recent analyst rating on (AMKR) stock is a Buy with a $37.00 price target. To see the full list of analyst forecasts on Amkor stock, see the AMKR Stock Forecast page.

Amkor Announces Q3 2025 Financial Results and CEO Succession

On October 27, 2025, Amkor Technology announced its financial results for the third quarter of 2025, reporting net sales of $1.99 billion and a net income of $127 million. The company also revealed a CEO succession plan, with Mr. Kevin Engel set to replace Mr. Giel Rutten as President and CEO effective January 1, 2026. This transition aims to maintain Amkor’s strategic focus on advanced packaging and high-growth markets, ensuring continued collaboration with leading semiconductor companies.

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.