Amkor Technology, a semiconductor packaging and testing firm, has solidified its position in the market by expanding its multiyear deal with Nvidia, which is valued at $1.5 billion. This strategic partnership is expected to enhance Amkor's advanced packaging business significantly, with UBS forecasting an additional $1.1 billion in sales by 2027.
Analyst Randy Abrams noted that Amkor holds an estimated 60% share in Nvidia's Vera CPU and sees potential for increased business from AMD's Venice CPU. Following this news, UBS upgraded Amkor's stock rating from neutral to buy and raised its price target from $80 to $90, suggesting a 38% upside from the previous closing price.
The company's shares have already surged 68% year to date, driven by the growing demand for advanced chip packaging amid the artificial intelligence boom. Despite UBS's optimistic outlook, the consensus among Wall Street analysts remains cautious, with only four out of twelve recommending a buy on Amkor's stock