• Earlier this week, Amkor Technology announced it is leveraging rising demand for artificial intelligence and high-performance computing by producing proprietary high-density fan-out technology at scale, while also outlining plans to return 40% to 50% of free cash flow to shareholders alongside sustained investments in growth and capacity expansion.

• This move positions Amkor as a central player in the global chip supply chain, benefiting from AI-driven opportunities and balancing shareholder returns with further operational growth.

• We’ll examine how Amkor’s profitable high-density fan-out production for AI markets strengthens its overall investment narrative.

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Investing in Amkor Technology means believing in continued demand for advanced semiconductor packaging, especially from AI and high-performance computing, and trusting the company to balance heavy capital spending with attractive shareholder returns. The recent announcement is a clear signal that Amkor aims to reinforce its position in the global chip supply chain by ramping proprietary high-density fan-out production, but it does not immediately resolve the ongoing risk of underutilization and margin pressure from legacy manufacturing assets.

Among recent developments, Amkor’s commitment to return 40% to 50% of free cash flow to shareholders stands out, especially as it continues investing in growth and new capacity at scale. This development ties directly into the catalyst of winning high-volume packaging contracts for demanding AI markets, highlighting the company’s ongoing focus on operational growth while maintaining shareholder value.

On the other hand, investors also need to be aware that persistent underutilization in legacy packaging may still pressure margins and…

Read the full narrative on Amkor Technology (it’s free!)

Amkor Technology’s narrative projects $7.8 billion revenue and $569.6 million earnings by 2028. This requires 7.0% yearly revenue growth and a $265.8 million earnings increase from $303.8 million today.

Uncover how Amkor Technology’s forecasts yield a $25.88 fair value, a 19% downside to its current price.

Simply Wall St Community members have provided six different fair value estimates for Amkor, ranging from US$7.79 to US$30 per share. While some see upside potential, others remain cautious given margin pressures from legacy manufacturing assets, underscoring the value of considering multiple viewpoints.