Analyst Explains Why Amkor Technology (AMKR) is Among The Best 'Backdoor' AI Stocks to Buy

Nancy Prial, Co-CEO & Senior Portfolio Manager at Essex Investment Management, said in a latest program on CNBC that she likes AMKR amid several tailwinds and the company’s exposure to data centers.

“It’s both the AI trade and the reshoring of manufacturing in this country trade. We like it as a backdoor AI play. They’re a manufact they’re a supplier, sorry, of outsourced assembly and test. Think about advanced packaging that’s needed for these very sophisticated chips and these servers and the data centers. What’s particularly interesting about Amkor Technology Inc (NASDAQ:AMKR) is they’re building a big facility in the United States in Arizona. They’re partnered both with Apple as well as with Taiwan Semiconductor. It’s the only outsource assembly and test manufacturing with a significant presence in the United States while also having presence overseas. So, we think they’ve got a number of tailwinds. And I would remind everybody that semiconductors are the backbone of technology. We can’t have any of the advances we’re excited about, whether it’s quantum, space, robotics, AI, without semiconductors to drive those advances.”

While we acknowledge the potential of AMKR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.