Amkor Technology: Still Reeling From Apple's Setback

(13min)

Summary

  • Amkor Technology's stock has plummeted nearly 60% since July 2024 due to weak end-user markets and the temporary loss of Apple's business, expected to recover in 3Q25.
  • The company operates in a commoditized OSAT industry, heavily reliant on smartphone and tablet manufacturers, with Apple accounting for 31% of FY24 net sales.
  • Despite a strong balance sheet, Amkor's recent financial performance has been disappointing, with three consecutive quarters of poor outlooks and declining free cash flow.
  • There was a substantial purchase of the stock by its major stakeholder in late February.
  • Is that a sign of a bottom?  An analysis of Amkor Technology follows in the paragraphs below.
  • Looking for a helping hand in the market? Members of The Insiders Forum get exclusive ideas and guidance to navigate any climate. Learn More »

Electronic technician holding tweezers and assemblin a circuit board.

krystiannawrocki

Shares of outsourced semiconductor assembly and test concern Amkor Technology, Inc. (NASDAQ:AMKR) have fallen nearly 60% since July 2024, pressured by weakness in their end user markets. The company announced that it has temporarily lost business from its biggest client

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This article was written by

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We are a team of analysts led by Bret Jensen, Chief Investment Strategist at Simplified Asset Management.

We run the investing group The Insiders Forum where we specialize in small and mid-cap stocks that insiders are buying. The Insiders Forum portfolio managed by Bret Jensen consists of 12-25 top stocks in different sectors of the market that are attractively valued and have had some significant and recent insider purchases. Our goal is to outperform the Russell 2000 (the benchmark) over time.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of QCOM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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