Why Amkor (AMKR) Stock Is Trading Up Today

What Happened?

Shares of semiconductor packaging and testing company Amkor Technology (NASDAQ:AMKR) jumped 4.7% in the afternoon session after its stock was lifted by a broad market rally that overshadowed negative reports concerning a key customer. The positive move came despite reports that Nvidia, a major client, instructed component suppliers including Amkor to halt production of its H20 AI chip. This chip was specifically designed for the Chinese market, but Beijing has reportedly raised security concerns and urged local companies to avoid using it. The production halt has led to semi-finished semiconductors 'piling up' at Amkor's packaging facilities, creating a potential inventory issue. However, the negative impact of this news was seemingly offset by strong positive sentiment across the wider market, as major indices surged following indications from the Federal Reserve that interest rate cuts could be on the horizon.

After the initial pop the shares cooled down to $24.30, up 4.7% from previous close.

Is now the time to buy Amkor? Access our full analysis report here, it’s free.

What Is The Market Telling Us

Amkor’s shares are quite volatile and have had 17 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 2 days ago when the stock dropped 3.9% on the news that the major indices continued to pull back, with technology stocks accounting for most of the market's largest decliners. A key reason for this trend is that much of the recent market gains were concentrated in the "AI trade," which includes these large technology and semiconductor companies. So this could also mean that some investors are locking in some gains ahead of more definitive feedback from the Fed. Despite the downturn, some analysts viewed this as an opportunity to own some of the "Core AI winners." Dan Ives of Wedbush Securities commented, "In our view, the tech bull cycle will be well intact for at least another 2-3 years, given the trillions being spent on AI infrastructure/software/chips/power/apps looking ahead. This remains our tech playbook and investor roadmap." Additionally, mixed earnings reports from retailers, such as Target, have added to the market's weakness. Investors are closely monitoring these reports for insights into the broader economic health and the potential impact of new tariffs on inflation.

Amkor is down 6.6% since the beginning of the year, and at $24.30 per share, it is trading 27.2% below its 52-week high of $33.37 from August 2024. Investors who bought $1,000 worth of Amkor’s shares 5 years ago would now be looking at an investment worth $1,901.

Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.