Amkor Technology Inc. (AMKR) Solid guidance with significant margin uplift driven by improving mix and 2.5D packaging ramp

Equity Research 27 July 2026 | 7:59PM EDT

Amkor Technology Inc. (AMKR): Solid guidance with significant margin uplift driven by improving mix and 2.5D packaging ramp

Key stock takeaways: We expect the stock to be range bound following a strong James Schneider, Ph.D. | quarter with revenue guidance that was just below the Street with significantly Goldman Sachs & Co. LLC stronger margins, set against elevated expectations heading into the print. We Anmol Makkar believe investor positioning was bullish ahead of the quarter, mainly driven by | optimism around the company’s CoWoS/2.5D-related product ramp and its recently Goldman Sachs & Co. LLC

announced partnership with Nvidia. Amkor continues to execute well on its Luya You | advanced packaging roadmap, with strong momentum in both Computing and Goldman Sachs & Co. LLC Auto/Industrial segments. We are Neutral rated as we expect Amkor to benefit from Khalil Fenina AI/HPC-driven advanced packaging tailwinds; however, we would prefer to see | stronger evidence of sustained operating leverage and improving cash flow before Goldman Sachs & Co. LLC

being more constructive on the stock at current levels.

Quarterly results were above the Street: Amkor reported revenue of $1.90 bn, above GS and the Street (Visible Alpha) at $1.82 bn. By end market, Communications was up 8% QoQ, Computing was up 18% QoQ, Automotive and Industrial was up 18% QoQ, and Consumer was up 13% QoQ. Gross margin of 16.8% was well above GS at 15.2% and the Street at 15.1%. Operating margin of 10.5% was also above GS at 8.7% and the Street at 8.5%. Operating EPS of $0.70 was well above GS at $0.49 and the Street at $0.48.

n Communications segment: Communications revenue grew 32% YoY in 2Q, in line with guidance, driven by iOS strength the iOS ecosystem that offset continued Android weakness. Management expects a high-single digit QoQ decline in 3Q, significantly worse than typically strong seasonality due to: (1) the SiP production transfer from Korea to Vietnam, (2) memory-related demand destruction, (3) customer inventory build patterns. n Strategic partnerships: Amkor highlighted strategic partnerships in key markets as a key pillar of long-term growth for the company. In addition to already announced 10-year advanced packaging and testing agreement with TSMC, Amkor also highlighted its recently announced multi-year partnership with Nvidia for advanced packaging and testing solutions. As part of the deal, Amkor is expected to receive $1.5 bn as prepayment from Nvidia in 2027 to support the expansion of Amkor’s US advanced packaging capacity. n Stronger margins: Amkor delivered a strong 2Q margin beat (with gross margins exceeding Street expectations by ~165bps) and guided 3Q gross margin to 19% at the midpoint, ~250bps above consensus. We believe the upside was driven by

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Goldman Sachs Amkor Technology Inc. (AMKR)

(1) higher utilization rate; (2) a strong ramp in advanced packaging revenues, supported by Computing and Automotive/Industrial segments, both of which came in more than 10% above Street estimates, and are expected to ramp in 2H.

3Q guidance was just below the Street on revenue, but significantly higher on margins and EPS: Revenue was guided to $2.00 bn at the midpoint, which is in line with GS prior at $2.00 bn but below the Street at $2.09 bn. EPS guidance of $0.72 - $0.82 (midpoint $0.77) was well above GS prior at $0.61 and the Street at $0.63. Gross margin is expected to increase by 220 bps at the midpoint in 3Q.

Estimate changes. We increase our 2026-28 EPS estimates to reflect higher revenue and margin assumptions. (see detailed estimates below — Exhibit 3).

Price target. We keep…