Amkor Technology (AMKR) is an underappreciated beneficiary of rising semiconductor packaging complexity, AI-related packaging demand and US supply-chain regionalization, BofA Securities said in a Thursday note.

Although the company remains a capital-intensive provider of outsourced semiconductor assembly and testing, markets are not fully reflecting its mix shift towards advanced products, growing role in its 2.5D 3D IC packaging offerings, as well as the long-term strategic value of its upcoming Arizona facility, the analysts wrote.

Longer planning horizons amid earlier engagement in the design cycle, client prepayments and capacity investments should improve visibility into loading and also support utilization and subsequently ramp operating leverage, the note said.

The brokerage said it expects EPS to reach $3.41 in 2028 from $1.51 in 2025, as mix and utilization improve.

BofA initiated coverage of the stock with a buy rating and a price target of $70 per share.

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