Amkor Technology AMKR is sharply increasing capital spending to capture growth in advanced packaging, AI and data-center applications, but the higher investment also raises execution and utilization risks. The company spent $688.4 million on capital expenditures in the first half of 2026, up from $226.1 million a year earlier, and expects full-year 2026 CapEx of $2.5-$3 billion. Most spending is targeted at facility expansion, including Arizona, while the remainder is directed toward HDFO, test and other advanced packaging capacity.
The investment is supported by improving demand. Second-quarter revenues rose 26% year over year to $1.90 billion, while gross margin expanded to 16.8% from 12%. Factory utilization improved from the 50s into the 70s, highlighting the operating leverage available as capacity fills. Computing revenues reached a record, increasing 20% sequentially, and are expected to accelerate to nearly 30% in the third quarter, driven by AI data center demand and the HDFO CPU ramp.
However, Amkor’s capital-intensive model carries risks. New capacity adds depreciation and fixed costs, while the company generally has limited backlog and sometimes invests without firm customer commitments. Customer-specific equipment may also be difficult to reuse if demand weakens. As of June 30, Amkor also had $2.5 billion of debt and $1.47 billion of purchase obligations, adding to its financial commitments.
Amkor’s strong revenue growth and improving utilization support its increased capital spending. The Zacks Consensus Estimate projects 2026 and 2027 revenues of $7.64 billion and $8.55 billion, respectively, suggesting continued growth. This outlook supports Amkor’s expansion, although its success will ultimately depend on sustained demand and high utilization of the new capacity.
Are AMKR's Rivals Catching Up in Advanced Packaging?
Intel Corporation INTC is stepping up advanced-packaging investment as AI demand expands, directly intensifying competition with AMKR. INTC raised 2026 CapEx above $20 billion and said packaging is included, while EMIB-T has a growing backlog and is targeted for high-volume customer ramps in 2027. With INTC also building wafer and packaging capacity, it gives AMKR a formidable capital-backed rival.
GlobalFoundries GFS is expanding capacity around silicon photonics and advanced packaging for AI data centers, putting GFS into closer competition with AMKR as packaging demand rises. GFS expects 2026 CapEx at the high end of its 15%-20% range, with capacity investment a key driver. Its SCALE platform targets near-packaged and co-packaged, while GFS expands packaging capability and capacity.
AMKR’s Share Price Performance, Valuation & Estimates
AMKR’s shares have gained 35.2% year to date, outperforming the broader Zacks Computer and Technology sector’s 25.6% growth.
AMKR’s YTD Price Performance
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From a valuation standpoint, AMKR trades at a forward 12-month P/S of 1.59X, lower than the industry average of 5.26X. The company carries a Value Score of B.
AMKR’s Valuation
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The Zacks Consensus Estimate for 2026 earnings is pegged at $2.60 per share, unchanged over the past 30 days, implying 73.3% year-over-year growth.
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AMKR stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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