What Happened?
Shares of semiconductor packaging and testing company Amkor Technology (NASDAQ:AMKR) jumped 5.9% in the afternoon session after the stock's positive momentum continued as reports indicated that Intel outsourced its high-end chip packaging production to the company for the first time. This marked Intel's first-ever move to farm out its EMIB process, a type of advanced packaging for high-end chips. According to the reports, Intel set up the process at Amkor's facility in South Korea due to high demand for its packaging services, which are important for the AI industry. The positive development followed other recent good news for the company. Amkor had reported stronger-than-expected earnings for the third quarter and Aletheia Capital had initiated coverage on the stock with a Buy rating and a price target of $62.00.
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What Is The Market Telling Us
Amkor’s shares are very volatile and have had 23 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was about 23 hours ago when the stock gained 7.4% on the news that reports indicated that Intel had outsourced its high-end chip packaging production to Amkor for the first time. This marked Intel's first-ever move to outsource its EMIB process, a type of advanced packaging. According to reports, Intel established the process at Amkor's facility in South Korea due to high demand for its packaging services, which are important for the AI industry. The news followed other positive developments for Amkor, which recently reported stronger-than-expected third-quarter earnings, beating forecasts for both revenue and profit. In addition, financial firm Aletheia Capital initiated coverage on the stock with a 'Buy' rating.
Amkor is up 67% since the beginning of the year, and at $43.43 per share, has set a new 52-week high. Investors who bought $1,000 worth of Amkor’s shares 5 years ago would now be looking at an investment worth $2,923.
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