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- Amkor Technology (NASDAQ:AMKR) was in focus on Tuesday as investment firm Needham started coverage on the semiconductor company, calling it an "underappreciated" story for reshoring and artificial intelligence.
- Shares rose more than 7.5% in mid-afternoon trading, and put the stock back in positive territory for the year.
- "AMKR is the only U.S-headquartered, major outsourced semiconductor assembly and test provider," analyst Charles Shi wrote in an investor note. "Importantly, the company has seen market-shaping customers, such as Apple, moving orders its way as they de-risk their Asian supply chains. Also, the company is ramping 2.5D capacity to become a viable second source to TSMC [Chip on Wafer on Substrate] for customers such as Nvidia and others."
- Shi started coverage on Amkor with a Buy rating and $40 price target.
- While Amkor is still dealing with the downturn in the automotive and industrial spaces, Shi believes an upturn is coming soon.
- "Ultimately, we believe the stock represents a strong buying opportunity as it lacks deserved premiums for the company's limited geopolitical risk and its exposure to AI," Shi wrote.
More on Amkor Technology
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