Investing.com -- Amkor Technology (NASDAQ: AMKR) popped 9% on Thursday after BofA Securities initiated coverage on the semiconductor packaging giant with a "Buy" rating and a bullish $70 price target—representing a massive 45% upside from its August 26 closing price of $48.40.

Driving the upgrade is Amkor’s pivotal positioning in the artificial intelligence supply chain, alongside a broader structural shift toward domestic chip manufacturing.

"We see AMKR as an underappreciated beneficiary of rising semiconductor packaging complexity, AI/HPC related advanced packaging demand and U.S. supply-chain regionalization," wrote BofA analyst Ruplu Bhattacharya. "While AMKR remains a cyclical and capital-intensive OSAT, we believe the market is not fully reflecting the company’s mix shift toward Advanced Products."

Key Growth Drivers & Financial Outlook

• BofA projects Amkor’s earnings per share to surge from $1.51 in 2025 to $3.41 in 2028—a robust 31% compound annual growth rate (CAGR) powered by higher factory utilization and richer product mix.




• The $70 target reflects a 21x multiple on BofA’s above-consensus 2028 EPS forecast.




• As chip design grows increasingly complex, Amkor is moving away from transactional orders toward deep, multi-generational design partnerships that provide stronger revenue visibility.

Arizona Megafite Locks In Tech Giants

A cornerstone of BofA’s thesis is Amkor’s upcoming Arizona advanced packaging facility. Phase 1 is already projected to be fully committed, anchored by tech behemoths Apple and NVIDIA alongside a 10-year partnership with TSMC. NVIDIA is expected to make an approximate $1.5 billion prepayment in 2027 to reserve capacity.

"Amkor’s planned Arizona facility is strategic as it is expected to help capture future advanced packaging business from customers looking to diversify their semiconductor supply chains," Bhattacharya highlighted. "Phase 1 targets $1bn of annual revenue and gross margin above 30% when at scale by 2030, supporting strategic value beyond n-t earnings."

Investment Risks

While BofA remains strongly bullish, the firm cautioned that near-term risks exist. The investment cycle into the Arizona plant will drive high capital intensity, leaving BofA modeling negative free cash flow (FCF) through 2026 and 2027.