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. (NASDAQ:AMKR) 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.

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. (NASDAQ:AMKR) provides outsourced semiconductor packaging and test services in the US, Japan, Europe, and the Asia Pacific.

While we acknowledge the potential of AMKR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, 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.