TTM Technologies TTMI is a manufacturer of advanced interconnect products, including printed circuit boards and substrates, as well as RF and microelectronic components. Amkor Technology AMKR, meanwhile, is a major outsourced semiconductor packaging and test provider, helping chipmakers integrate and validate increasingly complex devices.
The two companies share meaningful exposure to the semiconductor supply chain. Their businesses intersect across advanced interconnect technologies, substrates, packaging and high-performance computing applications, giving both a role in supporting increasingly complex electronic systems.
TTMI and AMKR are particularly worth comparing now as technology spending remains strong, especially around AI infrastructure. Evaluating their growth prospects, business durability, profitability trends and valuations can help investors determine which stock offers the more attractive opportunity today.
The Case for TTMI Stock
TTM Technologies' exposure to data center and networking makes it increasingly relevant to the semiconductor supply chain, as AI infrastructure requires higher-performance, high-frequency and increasingly complex interconnect solutions. This exposure is already translating into strong financial performance, as the company's second-quarter 2026 results show that Data Center and Networking represent 40% of sales and grew 91% year over year, driven by continued AI data-center buildouts.
TTMI delivered record second-quarter sales of $1 billion, up 37%, while non-GAAP EPS rose 71% to $0.99 and adjusted EBITDA margin expanded to 16.6%. Its 1.49 book-to-bill, $901 million 90-day backlog, up 81% year over year, and planned N+M asymmetrical PCB ramp provide visibility into continued growth. Management expects Data Center and Networking revenues to more than double in 2026, while approximately $600 million of N+M-related revenues are expected in the second half, with improving yields supporting margin expansion. TTM Technologies also expects 15%-20% organic revenue growth in 2027 and 2028, underscoring the potential durability of its AI-driven growth opportunity.
Customer and order visibility provide another important support. N+M already supports multiple customers, including data-center and networking customers, while TTM Technologies has more than 10 major hyperscaler and networking customers. However, investors should note that the 10 largest customers collectively represented 55% of second-quarter net sales, making customer concentration an important risk to monitor. Recent awards also strengthen TTMI's longer-term growth pipeline, including an AESA Detect-and-Avoid radar development contract and a first Golden Dome-related award supporting a $600-million-plus interconnect and integrated-electronics pipeline.
STG and ILFA should establish TTMI's European footprint and add advanced packaging, substrate, flex/rigid-flex and PCB capabilities, with the businesses expected to be moderately EBITDA-accretive. In August, TTM Technologies announced its planned $1.1-billion Epiq Solutions acquisition, adding AI-enabled SDRs, RF products and space-compute capabilities. The deal is expected to be immediately adjusted-EBITDA-margin accretive and EPS-accretive in 2028.
TTMI expects 2026 non-GAAP EPS to approach $5, above the Zacks Consensus Estimate of $4.82, which represents a 95.93% year-over-year increase. The consensus estimate has also been revised upward over the past 30 and 60 days.
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The Case for AMKR Stock
Amkor Technology is the world’s largest U.S.-headquartered outsourced semiconductor assembly and test (OSAT) provider. Its strategic position in the semiconductor supply chain is strengthening as AI and HPC workloads demand increasingly complex packaging, higher-density interconnects and greater system integration. In the second quarter of 2026, advanced products generated $1.56 billion of sales versus $1.23 billion a year earlier, while computing revenues reached a record and rose 20% sequentially, driven by data-center demand.
Long-term customer agreements and capacity expansion provide important growth visibility. Amkor Technology signed a 10-year advanced packaging agreement with TSMC to expand packaging/test capacity and strengthen the U.S. semiconductor ecosystem, while its multi-year NVIDIA partnership supports next-generation AI infrastructure. Under the NVIDIA agreement, the company will receive a $1.5-billion multi-year prepayment to support expansion of its U.S. advanced-packaging capacity. Arizona Phase I is fully committed, while expansions in Korea, Vietnam, Portugal and Taiwan should improve geographic flexibility and capacity. These investments can help Amkor Technology accommodate growing AI/HPC demand while improving supply-chain resiliency.
The strategy is already translating into stronger financial performance. Second-quarter revenues rose 26% year over year to a record $1.90 billion, while gross margin expanded to 16.8% and operating income more than doubled to $200 million. Network utilization also improved from the 50s into the 70s, with several technology platforms reaching full capacity. Management expects third-quarter 2026 sales of $1.95-$2.05 billion and gross margin of 18.5%-19.5%, suggesting continued momentum.
However, AMKR faces several challenges, including semiconductor cyclicality, customer concentration, memory-supply constraints and manufacturing-yield risks. Its capital-intensive operations also require substantial investment, with 2026 capital expenditures expected at $2.5-$3 billion. Top-10 customers accounted for 66% of second-quarter sales, while intense OSAT competition and advanced-packaging ramp risks could pressure results.
The Zacks Consensus Estimate for AMKR’s full-year 2026 earnings is pegged at $2.62 per share, with estimates revised higher over the past 30 and 60 days. The projection implies 74.67% year-over-year earnings growth, although this rate remains below TTMI’s projected growth over the same period.
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Stock Performance & Valuation: TTMI vs. AMKR
Year to date, TTM Technologies shares have surged 77.6%, significantly outperforming Amkor Technology, which has gained 24.4%. TTMI’s stronger performance reflects robust demand for advanced printed circuit boards and engineered products supporting AI data-center infrastructure, complemented by rising aerospace and defense demand. While both companies operate across the broader semiconductor and electronics supply chains, TTMI is benefiting from stronger exposure to high-complexity, high-growth applications, positioning it for a more favorable fundamental growth trajectory in 2026.
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From a valuation standpoint, TTMI appears somewhat more expensive than AMKR. While TTMI carries a Zacks Value Score of D, AMKR has a more favorable Value Score of B.
Going by the price-to-sales ratio, TTMI’s shares currently trade at 2.52X forward sales, higher than 1.46X for AMKR. However, TTMI’s premium valuation can be supported by its stronger growth outlook, particularly its rising exposure to AI data-center infrastructure.
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TTMI Looks Better Positioned Than AMKR
TTMI appears to be in a more advantageous position than AMKR, backed by robust AI-driven growth, higher projected earnings growth for 2026, a substantial order backlog, strong stock performance and improved margins. Although TTMI trades at a premium valuation, its growing involvement in the data center sector and the potential for sustained demand make it a more attractive semiconductor stock compared to AMKR.
TTM Technologies sports a Zacks Rank #1 (Strong Buy) at present, while Amkor Technology carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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This article originally published on Zacks Investment Research (zacks.com).