Amkor Technology Stock Is Gaining Tuesday: What’s Going On?

Amkor Technology Inc. (NASDAQ:AMKR) stock traded higher Tuesday despite narrowly missing third-quarter earnings and revenue estimates and issuing guidance below Wall Street expectations.

The company reported earnings of 76 cents per share, missing the analyst consensus estimate of 78 cents.

Revenue totaled $1.99 billion, below the $2.01 billion consensus estimate.

Gross profit reached $364 million, while gross margin expanded to 18.3%, up 150 basis points sequentially and 400 basis points year over year.

The margin improvement reflected a stronger mix of advanced packaging services, partially offset by foreign exchange headwinds and a July earthquake at Amkor’s Kumamoto, Japan, facility.

The disruption reduced sequential gross margin by approximately 60 basis points, although the facility resumed full operations during the quarter.

Amkor held $2.4 billion in cash and short-term investments as of Sept. 30, 2026.

Business Performance and Fourth-Quarter Trends

Computing revenue rose 25% sequentially to a record high, while automotive and industrial revenue increased 7%. Both segments reached record revenue levels for the second consecutive quarter.

Management expects computing revenue to grow at a low-double-digit sequential rate in the fourth quarter, representing year-over-year growth of more than 50%. Automotive and industrial revenue is projected to increase at a low-single-digit sequential rate.

Communications revenue declined 8%, with management forecasting a high-single-digit sequential decline in the fourth quarter. Consumer revenue rose 10%, but the company expects a midteens sequential decline in the segment.

Component shortages are expected to continue weighing on premium smartphones and Internet of Things devices in the fourth quarter, with both the iOS and Android markets projected to decline sequentially.

Amkor continued expanding its high-density fan-out (HDFO) CPU programs, with an additional hyperscaler program ramping up in the third quarter. Two new 2.5D packaging programs for networking and data centers are expected to launch in the fourth quarter.

The company’s agreement with NVIDIA Corp. (NASDAQ:NVDA), involving its Songdo campus in South Korea, is also expected to support advanced packaging capacity.

Global Expansion and Capacity Investments

In Arizona, Amkor announced the second phase of its Advanced Packaging and Test Campus.

The two phases are expected to provide more than 90,000 square meters of cleanroom space and require a combined investment of approximately $12 billion.

The first phase remains on track for completion by the end of 2027, while construction on the second phase is expected to begin in late 2027.

In South Korea, construction began on two buildings at the Gwangju campus. The planned expansions are expected to increase Amkor’s footprint in the country by 40% compared with 2025 levels when completed in 2028.

Fourth-Quarter Outlook and Capital Spending

Amkor expects fourth-quarter earnings of 65 cents to 75 cents per share, below the analyst consensus estimate of 76 cents.

Revenue is projected at $1.9 billion to $2 billion, compared with the consensus estimate of $2.02 billion.

Management expects gross margin to expand sequentially by approximately 20 basis points, supported by a favorable product mix as computing revenue grows and system-in-package (SiP) revenue declines.

Continued foreign exchange headwinds are expected to partially offset the improvement.

The company narrowed its 2026 capital expenditure forecast to approximately $2.5 billion, primarily reflecting the timing of payments related to construction of the Arizona campus.

Capital spending is expected to increase in 2027 as Amkor invests in facilities in Arizona, South Korea and Vietnam. Customer advance payments are expected to help fund the investments.

Needham Analyst Cuts Price Forecast

Following the earnings release, Needham analyst Charles Shi maintained a Buy rating on Amkor but lowered his price forecast to $55 from $90.

Shi said Amkor’s 2.5D and HDFO programs remain on track, but smartphone and consumer demand has weakened further as a major customer reduced production amid component shortages.

Management remains optimistic about advanced packaging growth and expects higher capital spending in 2027 to expand data center CPU, XPU and networking capacity in Arizona and South Korea.

Customer prepayments are expected to help fund part of the investment, the analyst said.

Shi maintained his estimates for calendar years 2027 and 2028 but lowered his price forecast to reflect sectorwide compression in valuation multiples.

AMKR Price Action: Amkor Technology shares were up 3.64% at $38.15 during premarket trading on Tuesday, according to Benzinga Pro data.

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