Needham Hikes Amkor Technology (AMKR) PT to $50, Cites Explosive CoWoS Demand, AI Growth

Amkor Technology Inc. (NASDAQ:AMKR) is one of the hot tech stocks to invest in. On January 5, Needham raised the firm’s price target on Amkor Technology to $50 from $37, while keeping a Buy rating on the shares. Needham increased its 2026 demand forecast for AI wafers and pointed to significant growth in both GPUs and custom AI chips/ASICs that surfaced last quarter. The firm believes that the long-term peak for CoWoS (advanced packaging) demand will be much higher than previously estimated. Consequently, it identified Amkor as a primary beneficiary and a dominant leader in the CoWoS space over the next 5 years.

The company is aggressively expanding its infrastructure to meet the demand for Edge AI and advanced packaging. Amkor Technology Inc. announced a significant $7 billion investment for a new advanced packaging and test campus in Arizona, which is expected to create up to 3,000 jobs. Additionally, management is optimizing its manufacturing footprint in Japan, a move projected to improve corporate gross margins by ~100 basis points by the end of 2027.

Amkor Technology, Inc. (AMKR): Among Mid-Cap Stocks Insiders Were Buying in Q1 2025

The company expects a sequential revenue decline of ~8% in Q4 2025, with guidance set between $1.775 and $1.875 billion. This outlook reflects a seasonal tapering in the iOS ecosystem and a 5% year-over-year decline in consumer revenue due to a specific wearable product lifecycle.

Amkor Technology Inc. provides outsourced semiconductor packaging and test services in the US, Japan, Europe, and the Asia Pacific.

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This article is originally published at Insider Monkey.