Amkor Technology rated Buy with $55 target as AI deals boost margins and reduce investment risks.

Amkor Technology, Inc. is reaffirmed as a Buy with a revised price target of $55, reflecting a more cautious valuation amid stronger business fundamentals. The company's gross margin is expected to improve from 14.2% in Q1 to nearly 19% by Q3, driven by AI packaging growth and significant agreements with Nvidia worth around $3 billion. While the communications segment faces challenges due to SiP migration, this weakness is anticipated to ease by mid-2027. Trading at 1.4 times estimated 2026 sales and 17 times estimated 2026 earnings per share, Amkor's risk-reward profile has improved, supported by Nvidia's prepayments that reduce risks related to capacity investments.

Amkor Technology (AMKR) trades at USD 39.30 on Pluang, up 0.64% in the last day, with a market cap of $9.76 billion. Nvidia (NVDA), linked to Amkor's recent agreements, is priced at USD 211.01, down 0.57% as of Oct 26, 2026 02:41 WIB. This snapshot highlights the current market positioning of both companies amid strategic developments.