A Look At Amkor Technology (AMKR) Valuation After Q4 Results And Arizona Expansion Plans

Amkor Technology (AMKR) is back in focus after Q4 results highlighted record revenue in advanced packaging and computing, paired with sizable 2026 capital spending plans and a new Arizona manufacturing facility.

See our latest analysis for Amkor Technology.

The share price has cooled recently, with a 5.31% 1 month share price return decline and a 1.81% fall over the last day. However, momentum over the past quarter and year looks stronger, with a 39.26% 3 month share price return and a 117.49% 1 year total shareholder return as investors react to Q4 results, Arizona expansion plans, fresh equity issuance and a continuing dividend.

If Amkor's focus on advanced packaging has your attention, it might be worth checking out our screener of 34 AI infrastructure stocks as another way to find semiconductor related opportunities tied to AI build out.

With the share price pulling back over the past month yet sitting well above last year’s levels, and with Amkor trading at roughly a 20% discount to one analyst price target, is there still a buying opportunity here, or is future growth already priced in?

Most Popular Narrative: 27.6% Undervalued

Amkor Technology's most followed narrative points to a fair value of $65, compared with the last close of $47.07, framing a sizeable valuation gap that hinges on advanced packaging and Arizona led expansion.

While analyst consensus expects efficiency gains from expanded U.S. and global capacity, these projections likely understate the absolute scale of Amkor's manufacturing lead. Rapid ramp-ups in regions like Vietnam and Arizona, paired with deepening ties to ecosystem leaders (including both top fabless and foundry partners), could make Amkor uniquely dominant in securing new design wins and contracts, driving multi-year outperformance in revenue and earnings growth.

Read the complete narrative.

Want to see what kind of revenue growth, margin lift, and future earnings multiple need to line up for that $65 number to hold up? The full narrative lays out a detailed glidepath for sales, profitability, and valuation assumptions that go well beyond headline Arizona spend and high level AI demand, and it shows exactly how those moving parts combine to support that implied upside.

Result: Fair Value of $65 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, there are still clear pressure points, including reliance on a handful of major customers and the risk that heavy spending in Arizona and Vietnam could result in underused capacity.

Find out about the key risks to this Amkor Technology narrative.

Another View: Cash Flows Tell A Tougher Story

The narrative fair value of $65 leans on earnings growth and multiples, but our DCF model paints a very different picture. On this approach, Amkor is priced well above an estimated future cash flow value of $4.62, which suggests far less room for error. Which lens do you find more convincing?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Amkor Technology for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 56 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

If this mix of optimism and caution feels familiar, it may be a good time to look at the numbers yourself and decide where you stand. You can start with the 3 key rewards to see what is driving the positive sentiment.

Looking for more investment ideas?

Do not stop your research with one stock. Broaden your watchlist with a few focused screens so you can spot opportunities before everyone else does.

• Target value seekers by checking out our list of 56 high quality undervalued stocks that combine quality fundamentals with prices that may not fully reflect their underlying strength.
• Prioritise resilience by scanning our 80 resilient stocks with low risk scores to find companies with profiles that may better suit a steadier, sleep at night approach.
• Hunt for under the radar potential with our screener containing 23 high quality undiscovered gems, where smaller names with solid business traits might be waiting for closer attention.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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