Reevaluating Amkor Technology’s Valuation Post-Intel EMIB Contract and Robust Q3 Earnings

Amkor Technology (AMKR) just scored a meaningful win, with Intel tapping it to handle EMIB advanced packaging work for the first time, alongside upbeat third quarter results that have clearly caught investors’ attention.

See our latest analysis for Amkor Technology.

The Intel EMIB win and earnings beat add fuel to a rally that has already seen a 75.45% three-month share price return and a 212.78% five-year total shareholder return, suggesting momentum is firmly building rather than fading.

If this kind of upside in chip packaging has your attention, it might be worth seeing what else is out there among high growth tech and AI stocks.

Yet with shares now trading above the average analyst price target and value scores looking middling, investors face a key question: is Amkor still an underappreciated AI packaging winner, or has the market already priced in the next leg of growth?

On a price-to-earnings ratio of 34.7 times, Amkor trades below both peer and industry averages. This hints at a valuation that is not overly stretched despite the recent share price surge.

The price-to-earnings multiple compares what investors are paying today for each dollar of current earnings. It is a key lens for profitable semiconductor names where earnings power and capital intensity matter more than pure top line growth.

For Amkor, the market seems willing to pay up for earnings that are forecast to grow significantly faster than the broader US market, while still assigning a slightly lower multiple than many packaging and semiconductor peers. This combination suggests investors are cautiously optimistic rather than euphoric.

Compared to the US Semiconductor industry average multiple of 38 times and an estimated fair price-to-earnings ratio of 36.3 times, Amkor’s 34.7 times stands at a discount that could plausibly narrow if its earnings growth trajectory plays out as expected.

Explore the SWS fair ratio for Amkor Technology

Result: Price-to-Earnings of 34.7x (ABOUT RIGHT)

However, if revenue momentum slows or there is a setback in advanced packaging demand, Amkor’s premium multiple could compress quickly and the recent rally could stall.

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

While the earnings multiple paints Amkor as roughly fairly priced, our DCF model tells a harsher story, with fair value at $12.68 versus a $43.23 share price. That kind of gap implies the market may be banking on much rosier cash flows than the model assumes. So who is right?

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 906 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.

If you see the numbers differently or want to dig into the assumptions yourself, you can build a complete view in just a few minutes by using Do it your way.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Amkor Technology.

Before you move on, you may wish to use the Simply Wall Street Screener to uncover focused, data driven opportunities you might otherwise miss.

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.

Companies discussed in this article include AMKR.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com