Key Highlights

  • AMKR shares rose 7.10% pre-market to $44.66 from a $41.70 prior close.
  • Nvidia plans to expand packaging capacity with Amkor in South Korea.
  • Target: more than 300% higher interposer wafer capacity by the end of 2028.
  • The stock remains well below its 52-week high of $96.68.

Nvidia Capacity Plan Names Amkor

Amkor Technology (NASDAQ:AMKR) shares rose 7.10% pre-market today to $44.66, up $2.96 from the prior close of $41.70, which followed a 0.45% decline. Nvidia (NASDAQ:NVDA) announced plans with a group of supply chain partners to expand manufacturing capacity for its accelerated computing and AI factory platform.

Under the plan, Nvidia and Amkor intend to expand advanced packaging capacity in South Korea, targeting a greater than 300% increase in interposer wafer capacity by the end of 2028. The expansion, alongside Amkor's development of new manufacturing facilities in South Korea, is meant to support higher volumes for Nvidia's current and next-generation platforms. Nvidia also plans to raise substrate capacity 2.5x over three years and double its semiconductor testing capacity from 2026 to 2027.

AI Names Rebound After a Chip Selloff

AI-linked stocks are rebounding on strong results from SpaceX (NASDAQ:SPCX) and Super Micro (NASDAQ:SMCI) after a recent chip-sector selloff, and the tech sector ETF is up about 1% pre-market. Amkor's gain is well ahead of that.

The stock still faces pressure. B. Riley cut its price target to $46 from $65, and the shares remain well below their 50-day and 200-day averages and the 52-week high of $96.68. The 52-week low is $29.50.

Company Snapshot and Valuation

Amkor is the largest U.S.-headquartered outsourced semiconductor assembly and test provider. It offers turnkey services including wafer bumping, flip-chip, system-in-package and final test for integrated device makers, fabless chip designers and foundries, with products aimed at high-performance computing, AI, data center, automotive, IoT, smartphone and wearable markets. First-quarter 2026 net sales were a record $1.68 billion, up 27% from a year earlier, and the company is investing $7 billion in a new advanced packaging and test campus in Peoria, Arizona.

The shares carry a forward P/E of 15.13 and a trailing P/E of 18.70, with EPS of $2.23 and a 0.80% dividend yield. Volume was 2.97 million shares in the last session.

Next Up: AI Demand Follow-Through

Investors will watch whether AI-linked demand holds and how quickly the South Korea facilities progress toward the 2028 capacity target.