Semiconductor · CNBC Technology
A little known semiconductor packaging and testing stock is poised to gain in AI boom
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Amkor Technology isn't a household name, but it's poised to become a big winner as artificial intelligence spreads.
Key facts
- Hyperscalers have already earmarked nearly $700 billion to bolster their AI pushes in 2026, more than was budgeted in 2025
- Needham rates Amkor a buy with a $65 price target on the stock, 12% above Friday's close
- Amkor's focus on advanced technology allowed it to capture strong sales during the first wave of AI in [the second half of 2023] and 2024," UBS analyst Randy Abrams said in a February report
- Apple needs these guys if it wants to make its chips in the USA." Melius rates Amkor a buy with a $60 price target
Summary
Shares of the semiconductor packaging and testing provider have jumped 47% since the start of the year, and have almost quadrupled over the past 12 months. AMKR YTD mountain Amkor Technology shares are up 47% in 2026 alone Amkor's strong performance comes as data center spending is projected to reach $7 trillion globally by 2030, according to consultant McKinsey & Co. At the same time, products from smartphones to electronic vehicles are also using semiconductor technology to power AI-enabled features. " Needham rates Amkor a buy with a $65 price target on the stock, 12% above Friday's close.
In 2024, Amkor signed an agreement with Taiwan Semiconductor Manufacturing Co. to provide advanced, turnkey packaging and test services at a chip fabrication plant, also in Arizona. Hyperscalers have already earmarked nearly $700 billion to bolster their AI pushes in 2026, more than was budgeted in 2025. "Amkor's focus on advanced technology allowed it to capture strong sales during the first wave of AI in and 2024," UBS analyst Randy Abrams said in a February report. "AMKR's smartphone portfolio mix is skewed to the high-end, meaning they should outperform more conservative unit forecasts of down 10-15%," Moore wrote in a February report. Nevertheless, Melius Research expects Amkor shares to grow less volatile as it picks up AI-related business in some form or another in the U.S. and abroad.