BofA initiates coverage on Amkor with buy rating, price target $70

Bank of America has launched coverage on Amkor Technology with a Buy rating and a $70 price target, betting that the semiconductor packaging company is positioned to capture an outsized share of the AI infrastructure buildout. The thesis centers on two forces: surging demand for advanced packaging and Amkor’s aggressive capacity expansion to meet it.

The call lands at an interesting moment. Amkor just posted record Q2 2026 revenue of $1.9B, a 26% jump year-over-year, and has locked in long-term deals with two of the most important names in chips. BofA is actually the more conservative voice in the room.

The advanced packaging thesis

Amkor is the world’s largest independent outsourced semiconductor assembly and test provider, or OSAT in industry shorthand. Advanced packaging has become the bottleneck everyone is scrambling to solve. As AI chips get more complex, stacking and connecting multiple chiplets together in sophisticated packages has become just as important as the transistor design itself.

UBS upgraded Amkor to Buy in July 2026 with a $90 price target, a full $20 above BofA’s number. B. Riley, meanwhile, raised its own target to $70 but kept a Neutral rating, essentially saying the stock is fairly priced at that level.

Two deals that changed the calculus

On July 23, 2026, Amkor announced a multi-year advanced packaging agreement with NVIDIA, specifically targeting next-generation AI infrastructure. A month earlier, in June 2026, Amkor revealed a 10-year advanced packaging agreement with TSMC, the world’s dominant contract chipmaker.

The Arizona bet

The company is building a $7B advanced packaging campus in Arizona, with production slated to begin in 2028. The facility aligns with the broader US semiconductor onshoring push that has already drawn TSMC, Samsung, and Intel into massive domestic construction projects. It gives the company geographic proximity to TSMC’s own Arizona fabs, which are already producing chips on US soil.

Record quarter, broader momentum

Amkor’s Q2 2026 results gave analysts plenty of material to work with. The $1.9B in revenue was a company record, and the 26% year-over-year growth came from multiple segments rather than a single customer or end market. Computing drove much of the increase, but automotive and industrial segments also contributed.

What to watch going forward

The analyst consensus is clearly tilting positive, but the $20 gap between UBS’s $90 target and BofA’s $70 target tells you there’s real disagreement about how much of Amkor’s growth story is already priced in. Bears would point to execution risk on the Arizona campus, which still needs to hit its 2028 production timeline. The competitive landscape deserves attention too. ASE Technology, Amkor’s main OSAT rival, isn’t standing still. And TSMC itself has been expanding its own in-house advanced packaging capacity, which could theoretically reduce the volume of work it sends to partners like Amkor. The 10-year agreement mitigates that risk to some degree, but the tension between TSMC-as-partner and TSMC-as-competitor is worth monitoring.