By Nate Wolf

Amkor Technology stock took off after the semiconductor-packaging company reported higher second-quarter earnings and revenue than expected and forecast a strong quarter ahead.

The company posted earnings of 22 cents a share in the June quarter, surpassing analysts' consensus estimate of 16 cents. Sales totaled $1.51 billion, above the $1.42 billion Wall Street had expected and up from $1.46 billion the prior year.

Amkor shares spiked 17% to $24.84 on Tuesday, though they remain down 3.3% in 2025.

The company's guidance for the third quarter also came in higher than analysts' expectations. The company forecast earnings of 34 cents to 48 cents a share from sales of between $1.88 billion and $1.98 billion.

Amkor's communications segment, which consists of packaging and test services for smartphones and tablets, played a significant role in the third-quarter outlook. The segment accounts for about 40% of Amkor's business.

"We expect a strong third quarter driven by the launch of the next-generation premium-tier smartphones," said CEO Giel Rutten on a conference call. "As AI expands into edge devices, we are working closely with lead customers to assess future device needs and develop advanced packaging solutions to support these innovations."

Amkor's smartphone business and potential growth from its computing segment, which sells chip packaging and testing services to Nvidia, prompted Charles Shi of Needham to lift his estimates for Amkor's 2025 and 2026 results. Shi reiterated a Buy rating for Amkor and lifted his target for the price to $28 from $22.

The company didn't provide fourth-quarter guidance, as analysts pointed out. While Steve Barger of KeyBanc Capital Markets reiterated a Sector Weight rating and raised his estimates for Amkor's 2026 and 2027 earnings, KeyBanc reduced its forecasts for 2025 due to "modestly lower expectations in the back half."

"Understanding what's happening in the fourth quarter is difficult," Rutten said on the call. "There's still quite significant uncertainty certainly in the [communications] market, what the volumes will be."

Write to Nate Wolf at nate.wolf@barrons.com

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July 29, 2025 12:43 ET (16:43 GMT)

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