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LivestreamMenuAmkor Technology , a semiconductor packaging and testing company, is poised to rise even more after expanding its multiyear deal with Nvidia this week, according to UBS. The investment bank upgraded Amkor to buy from neutral. It also hiked its price target on shares to $90 from $80, implying 38% upside from Thursday’s close. “We view the US$1.5bn NVIDIA strategic partnership supporting Amkor’s on-going ramp of [Nvidia’s] Vera [central processing unit (CPU)] (we estimate 60% share), GB10 and N1X and future products (likely extending to Rosa),” analyst Randy Abrams said Friday in a note to clients. “We also see opportunity to pull-in and accelerate 2nd source business for AMD’s Venice CPU where demand is upsiding.” Amkor on Thursday reached an agreement with Nvidia to expand its multiyear advanced chip packaging partnership with the semiconductor firm. The deal is valued at $1.5 billion and includes a cash prepayment. Now, UBS forecasts that Amkor will add $1.1 billion in sales to its advanced packaging business in 2027. Shares of Amkor have risen 68% year to date as an artificial intelligence boom has fueled demand for advanced chip packaging. Earlier this summer, the company reached a 10-year deal with Taiwan Semiconductor Manufacturing Company . It also has an ongoing business relationship with Advanced Micro Devices. AMKR YTD mountain Amkor Technology has risen 68% year to date. Overall, there is a “stronger outlook for [Amkor’s] advanced packaging business driven off rising server CPU volumes and good support from growth in the base business, tighter capacity and price hikes to pass through inflationary costs,” Abrams wrote. UBS’ call goes against consensus on Wall Street. Of the 12 analysts covering Amkor, just four have a buy rating on the stock, LSEG data shows.Read More
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