Amkor Technology (AMKR) Trimmed by Harbor Mid Cap Value Fund on Valuation Concerns

The Harbor Capital Advisors released its “Mid Cap Value Fund’s” Q4 2025 investor letter. A copy of the letter can be downloaded here. Harbor Mid Cap Value Fund, subadvised by LSV Asset Management, delivered solid outperformance in the fourth quarter of 2025, with the Institutional Class returning 4.07% versus 1.42% for the Russell Midcap Value Index, benefiting from strength in value stocks as the Russell Midcap Growth Index declined 3.7% during the period. U.S. equities broadly advanced, with the S&P 500 Index rising 2.7% in the quarter and 17.9% for the full year, while mid-caps lagged, with the Russell Midcap Index up just 0.2% in Q4. For 2025, the Fund gained 15.95% (Institutional Class), outperforming the benchmark’s 11.05% return. Attribution data show a total quarterly excess return of 2.82%, largely from selection effects, underscoring the manager’s quantitative value discipline focused on fundamental undervaluation, improving momentum, and risk control. Looking ahead, management noted that while AI-driven large-cap leadership has elevated valuations in certain segments, mid- and small-cap value stocks continue to trade at more attractive multiples, positioning the Fund to capitalize on opportunities within economically sensitive and cash-generative businesses. In addition, please check the Fund’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, Harbor Capital Advisors' Mid Cap Value Fund highlighted stocks like Amkor Technology, Inc. (NASDAQ:AMKR). Amkor Technology, Inc. (NASDAQ:AMKR) is a semiconductor packaging and test services provider supporting major chipmakers with advanced manufacturing solutions. The one-month return of Amkor Technology, Inc. (NASDAQ:AMKR) was 0.39% while its shares traded between $14.03 and $57.09 over the last 52 weeks. On February 26, 2026, Amkor Technology, Inc. (NASDAQ:AMKR) stock closed at approximately $48.52 per share, with a market capitalization of about $11.999 billion.

Harbor Capital Advisors' Mid Cap Value Fund stated the following regarding Amkor Technology, Inc. (NASDAQ:AMKR) in its Q4 2025 investor letter:

"We trimmed our position in Amkor Technology, Inc. (NASDAQ:AMKR) in the Information Technology sector. Amkor has done well in recent years, benefiting from the surging demand in AI and as a result has become less attractive from a valuation standpoint. While the stock still generates good cash flow, both earnings and cash flow have not kept up with the increase in stock price. Stock price momentum has been very strong but the decline in fundamentals (valuation) led us to sell the position."

Amkor Technology, Inc. (NASDAQ:AMKR)is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 48 hedge fund portfolios held Amkor Technology, Inc. (NASDAQ:AMKR) at the end of the fourth quarter, which was 35 in the previous quarter. While we acknowledge the risk and potential of Amkor Technology, Inc. (NASDAQ:AMKR) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. 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.

In another article, we covered Amkor Technology, Inc. (NASDAQ:AMKR) and shared the list of best tech stocks that beat earnings estimates. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

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