Amkor Technology (AMKR), a semiconductor packaging and testing specialist, received a rating upgrade from UBS on the 24th (US local time) following the announcement of a multi-year partnership expansion with NVIDIA (NVDA). UBS raised its investment opinion from Neutral to Buy and increased the price target from $80 to $90, representing approximately 38% upside potential from the 23rd closing price. The upgrade follows Amkor's confirmation of a multi-year contract with NVIDIA to expand advanced chip packaging partnership, valued at $1.5 billion and including a cash advance. UBS analyst Randy Abrams stated the strategic partnership will strongly support mass production of NVIDIA's Vera CPU, GB10, N1X, and future products, estimating Amkor will capture approximately 60% of NVIDIA Vera CPU volume. The partnership addresses surging demand in advanced packaging, with UBS projecting Amkor will secure an additional $1.1 billion in revenue from advanced packaging business alone by 2027.
UBS Upgrades Amkor Technology Rating and Price Target
According to CNBC on the 24th (US local time), UBS upgraded Amkor Technology's investment rating from Neutral to Buy immediately after the company finalized a multi-year contract with NVIDIA. The firm raised its price target from $80 to $90, indicating approximately 38% upside potential from the 23rd closing price. UBS analyst Randy Abrams stated in a note to clients that the strategic partnership with NVIDIA will strongly support mass production of Amkor's Vera CPU, GB10, N1X, and future products.
Amkor Secures 60% Share of NVIDIA Vera CPU Volume
UBS analyst Randy Abrams estimated Amkor will capture approximately 60% of NVIDIA Vera CPU volume. The firm noted that multi-sourcing business opportunities for AMD's (AMD) Venice CPU, which is experiencing surging demand, will also accelerate. Amkor announced it signed a multi-year contract with NVIDIA to expand advanced chip packaging partnership.
Multi-Year Contract Worth $1.5 Billion Includes Cash Advance
The contract is valued at $1.5 billion and includes a cash advance. Amkor previously announced the finalization of a multi-year contract with NVIDIA to expand advanced chip packaging partnership.
UBS Projects $1.1 Billion Additional Revenue by 2027
UBS projected Amkor will secure an additional $1.1 billion (approximately 1.6 trillion won) in revenue from advanced packaging business alone by 2027. The projection reflects the financial impact of the expanded NVIDIA partnership and increased production capacity for advanced chip packaging.
FAQ
What rating upgrade did UBS give Amkor Technology on the 24th?
UBS upgraded Amkor Technology's investment rating from Neutral to Buy on the 24th (US local time) and raised the price target from $80 to $90, representing approximately 38% upside potential from the 23rd closing price.
How much is Amkor's multi-year contract with NVIDIA worth?
Amkor's multi-year contract with NVIDIA to expand advanced chip packaging partnership is valued at $1.5 billion and includes a cash advance, supporting mass production of NVIDIA's Vera CPU, GB10, N1X, and future products.
What share of NVIDIA Vera CPU volume will Amkor capture according to UBS?
UBS analyst Randy Abrams estimated Amkor will capture approximately 60% of NVIDIA Vera CPU volume under the multi-year partnership agreement announced on the 24th.
