Normally, Amkor is the biggest player in the Made in USA 2.5D middleware technology field. Apple's production needs in Arizona will be met by Amkor; this includes TSMC, Avgo, and Nvidia. As these companies scale up, the company will be in a very good position. Amkor used to focus on the low-revenue mobile business and had low margins. Now, by shifting towards AI, they are trying to increase margins and reach the level the market demands. So far, they have progressed quite well, which has made the stock widely known.
They have increased capacity but haven't yet fully implemented it in terms of 100% utilization. This is a somewhat uncertain point for the market. Despite this, the company continues to announce new collaborations. Last Thursday, they reached a new $1.5 billion agreement with Nvidia. In my opinion, this means that demand is really high. This was one of the reasons I bought on Friday. Also, because outsourcing operations puts an extra tax burden on companies, major players have shifted their production to the US, which clearly benefits Amkor.
In the age of agentic AI, especially thanks to CPUs, I think Amkor will deliver a strong balance sheet; provided there are no technical glitches. My absolute certainty is that its forecasts and backlog will be very strong. Because market expectations are very high, if a good balance sheet comes in, the stock could rise by 20%. The options market is already pricing this in. Similarly, if margins aren't good despite all the deals and price increases, the market will sell sharply.
Based on my personal opinion and the statements of the executives I follow, I can clearly say that Amkor is currently in extremely high demand in the advanced packaging business. I expect a good balance sheet and an upgraded outlook. Of course, I'm not sure how the market will react; unfortunately, technical levels in the indices also have an effect. But I think AMKR will make another attack towards $100; the process might take a little longer, but the company deserves it. Its valuation isn't cheap, but I still hope it won't disappoint me.
