We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Amkor's AI and HPC Packaging Demand Grows: Can Growth Continue?
Read MoreHide Full Article
Key Takeaways
Amkor posted record Q2 revenues of $1.90B, up 26%, as Computing hit a record on data-center demand.
Amkor is advancing 2.5D, HDFO and co-packaged optics with support from TSMC and NVIDIA partnerships.
Amkor sees Q3 sales of $1.95-$2.05B and gross margin of 18.5%-19.5%, alongside major capacity spending.
Amkor Technology (AMKR - Free Report) is seeing strong growth in AI and HPC packaging demand, supported by rising data-center requirements and expanding advanced-packaging programs. In the second quarter of 2026, the company reported record revenues of $1.90 billion, up 26% year over year, while Computing revenues reached a record high driven by strong data-center demand. AMKR also said AI data-center demand remained robust, with HDFO programs and a new data-center CPU program ramping up.
The company’s advanced-packaging portfolio is becoming increasingly important as AI and HPC systems require greater performance, integration and packaging complexity. Amkor is working with leading customers on 2.5D packaging, HDFO and co-packaged optics, while its 10-year TSMC agreement and multi-year NVIDIA partnership are supporting capacity expansion and technology development.
Recent developments further strengthen this growth opportunity. Amkor announced Phase 2 of its Arizona Advanced Packaging and Test Campus, increasing planned investment to approximately $12 billion. The expansion will add 60,000 square meters of cleanroom capacity, supported by customer commitments that have surpassed the 33,000 square meters planned for Phase 1.
Amkor’s outlook also supports the potential for continued growth. The company guided for third-quarter 2026 net sales of $1.95-$2.05 billion, above second-quarter revenues, while projecting gross margin of 18.5%-19.5%, compared with 16.8% in the second quarter. Amkor also expects full-year 2026 capital expenditures of $2.5-$3 billion, reflecting continued investment in capacity.
Advanced Packaging Rivals Target AI and HPC Growth
With AI/HPC demand intensifying, Taiwan Semiconductor (TSM - Free Report) is expanding its advanced-packaging capabilities to support customers. TSMC said packaging capacity remains tight and is allocating 10%-20% of its 2026 capital budget to advanced packaging, testing and related activities. Taiwan Semiconductor therefore competes for AI/HPC packaging opportunities while continuing to expand capacity to address customers’ multiyear demand.
Intel Corporation (INTC - Free Report) is challenging AMKR with its EMIB-T advanced-packaging technology, which management says enables advanced AI-silicon solutions beyond mainstream offerings. Intel reported high customer interest and a growing EMIB-T backlog, with yields and reliability hitting targets as it prepares for high-volume production supporting customer ramps in 2027. INTC is also positioning its wafer-foundry and packaging capabilities for the shift toward AI-oriented system-in-package designs.
AMKR’s shares have surged 70.4% year to date, outperforming the broader Zacks Computer and Technology sector, which has gained 21.8%.
AMKR’s One-Year Price Performance
Image Source: Zacks Investment Research
From a valuation perspective, AMKR appears attractively priced, with a forward 12-month P/S of 1.51X, significantly below the industry average of 5.03X. Its Value Score of B further supports its valuation profile.
AMKR’s Valuation
Image Source: Zacks Investment Research
AMKR’s earnings outlook remains positive. The Zacks Consensus Estimate for AMKR’s 2026 and 2027 earnings is pegged at $2.60 and $2.72 per share, respectively. Although estimates have moved lower over the past 30 days, they still represent year-over-year growth of 73.3% and 4.3%, respectively.
View the Zacks #1 Rank List
Image: Shutterstock
Amkor's AI and HPC Packaging Demand Grows: Can Growth Continue?
Key Takeaways
Amkor Technology (AMKR - Free Report) is seeing strong growth in AI and HPC packaging demand, supported by rising data-center requirements and expanding advanced-packaging programs. In the second quarter of 2026, the company reported record revenues of $1.90 billion, up 26% year over year, while Computing revenues reached a record high driven by strong data-center demand. AMKR also said AI data-center demand remained robust, with HDFO programs and a new data-center CPU program ramping up.
The company’s advanced-packaging portfolio is becoming increasingly important as AI and HPC systems require greater performance, integration and packaging complexity. Amkor is working with leading customers on 2.5D packaging, HDFO and co-packaged optics, while its 10-year TSMC agreement and multi-year NVIDIA partnership are supporting capacity expansion and technology development.
Recent developments further strengthen this growth opportunity. Amkor announced Phase 2 of its Arizona Advanced Packaging and Test Campus, increasing planned investment to approximately $12 billion. The expansion will add 60,000 square meters of cleanroom capacity, supported by customer commitments that have surpassed the 33,000 square meters planned for Phase 1.
Amkor’s outlook also supports the potential for continued growth. The company guided for third-quarter 2026 net sales of $1.95-$2.05 billion, above second-quarter revenues, while projecting gross margin of 18.5%-19.5%, compared with 16.8% in the second quarter. Amkor also expects full-year 2026 capital expenditures of $2.5-$3 billion, reflecting continued investment in capacity.
Advanced Packaging Rivals Target AI and HPC Growth
With AI/HPC demand intensifying, Taiwan Semiconductor (TSM - Free Report) is expanding its advanced-packaging capabilities to support customers. TSMC said packaging capacity remains tight and is allocating 10%-20% of its 2026 capital budget to advanced packaging, testing and related activities. Taiwan Semiconductor therefore competes for AI/HPC packaging opportunities while continuing to expand capacity to address customers’ multiyear demand.
Intel Corporation (INTC - Free Report) is challenging AMKR with its EMIB-T advanced-packaging technology, which management says enables advanced AI-silicon solutions beyond mainstream offerings. Intel reported high customer interest and a growing EMIB-T backlog, with yields and reliability hitting targets as it prepares for high-volume production supporting customer ramps in 2027. INTC is also positioning its wafer-foundry and packaging capabilities for the shift toward AI-oriented system-in-package designs.
AMKR’s Share Price Performance, Valuation & Estimates
AMKR’s shares have surged 70.4% year to date, outperforming the broader Zacks Computer and Technology sector, which has gained 21.8%.
AMKR’s One-Year Price Performance
Image Source: Zacks Investment Research
From a valuation perspective, AMKR appears attractively priced, with a forward 12-month P/S of 1.51X, significantly below the industry average of 5.03X. Its Value Score of B further supports its valuation profile.
AMKR’s Valuation
Image Source: Zacks Investment Research
AMKR’s earnings outlook remains positive. The Zacks Consensus Estimate for AMKR’s 2026 and 2027 earnings is pegged at $2.60 and $2.72 per share, respectively. Although estimates have moved lower over the past 30 days, they still represent year-over-year growth of 73.3% and 4.3%, respectively.
Image Source: Zacks Investment Research
AMKR stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.