Amkor Technology (AMKR): Hidden Gem Benefiting from AI Growth

What’s not to like about semiconductors? 

What’s not to like about the emergence of Artificial Intelligence to increase demand for chips even more? 

The above is the basic premise behind an investment in one of the leading semiconductor packaging and testing firms in Amkor Technology (AMKR). 

Yes, packaging and testing is not the sexiest side of technology. But you have to realize that right now there is a Gold Rush taking place in the AI world. 

And just like the real Gold Rushes of the past few centuries, the majority of miners go home bankrupt. The people who thrive are those that sell products and services to the miners. And it is in that space that AMKR ably serves the AI technology community.

On the leading edge…not the bleeding edge.  

The proof of this success shows up as AMKR is riding the crest of 6 consecutive earnings beats. The last 3 have been the most impressive averaging a whopping 60% beat per quarter.  

Some leading Wall Street analysts are starting to take notice of the tremendous upside potential. That includes top analysts like Charles Shi of Needham (top 9% of analyst stock picking performance) who easily sees outpacing the market in the year ahead given the $45 price target which is 41% above the current price.  

Even more exciting is the street high $50 target held by Craig Ellis of B. Riley who sits in the top 2% of all analysts...and yes, top 2% means the performance of Craig’s stock recommendations are truly cream of the crop. 

Now let me share something with the value seekers out there. Shares made a new 52 week high in the middle of July at $44.86. They have stumbled greatly since then along with most other technology growth stocks in a serious round of profit taking out of the group. 

This has AMKR shares now trading in the low $30’s. Even as growth prospects remain tremendous given the expectation for EPS to rise 46% next year. This is precisely the kind of earnings momentum the top analysts are pounding the table about…and just not enough people are listening. 

Hopefully you hear the call. That the AI revolution is far from over and AMKR is in a unique position to benefit. 

In fact, I suspect that the $50 target from Craig Ellis is on the low side of where shares will be by the end of 2025. Given the combination of serious growth + tremendous earnings beats + current low valuation points to a doubling of shares in the year ahead. 

It’s time to place some chips on this very attractive chip stock. 

What To Do Next?

AMKR is just one of the 12 stellar stocks found in my Zen Investor portfolio.

Plus 2 more new picks are being added on Wednesday, October 2nd. 

To learn more about our proprietary process to find more 100%+ winners…and to get your hands on the current top 12 recommendations (and the next 2 coming soon)…then all you need to do is click the link below. 

Discover the Zen Investor portfolio > 

Wishing you a world of investment success!

Steve Reitmeister…but everyone calls me Reity (pronounced “Righty”)

Editor of the Zen Investor

Want to get in touch? Email us at news@wallstreetzen.com.