Amkor Technology Expands Partnership with Nvidia; UBS Upgrades to Buy
Amkor Technology, a semiconductor packaging and testing company, has expanded its multiyear partnership with Nvidia under a $1.5 billion deal that includes a cash prepayment. The agreement is expected to support Amkor's advanced chip packaging business for future products like the Vera CPU and others from Nvidia. UBS upgraded Amkor’s stock rating to 'buy' from 'neutral,' raising its price target to $90, implying 38% upside potential based on Thursday's closing share price. UBS analyst Randy Abrams highlighted that this partnership could accelerate business for AMD's Venice CPU as well and expects the deal to add approximately $1.1 billion in sales by 2027. Amkor’s shares have surged 68% year-to-date, driven largely by increased demand from AI-related advanced packaging needs.
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