AMKR Q2 Earnings Call Highlights AI Ramp and Margin Gains

Amkor Technology, Inc. AMKR used its second-quarter 2026 earnings call to emphasize accelerating demand for advanced packaging, particularly in AI data center and high-performance computing applications. Management also pointed to higher utilization and a richer product mix as the main drivers of expanding profitability.

The company reported earnings of $0.7 per share, which beat the Zacks Consensus Estimate of $0.47 per share. Revenues of $1.9 billion topped the Zacks Consensus Estimate of $1.8 billion. The central message, however, was how capacity shifts and customer partnerships are reshaping growth.

Amkor Technology, Inc. Price, Consensus and EPS Surprise

Amkor Technology, Inc. price-consensus-eps-surprise-chart | Amkor Technology, Inc. Quote

AMKR Leans Into AI and Computing Demand

Kevin Engel, president and chief executive officer, said semiconductor demand remains robust in AI data center applications, where packaging complexity continues to rise.

Computing revenues reached a quarterly record, and a new data center CPU program began ramping in the second quarter. Management expects that program to scale further through the second half.

Engel also highlighted active programs in 2.5D, high-density fan-out and co-packaged optics, framing advanced packaging as increasingly central to system performance.

Amkor Sees a Stronger Third-Quarter Mix

Megan Faust, executive vice president, chief financial officer and treasurer, guided third-quarter revenues to $1.95 billion to $2.05 billion and gross margin to 18.5% to 19.5%.

She said that Computing revenues should rise nearly 30% sequentially, driven by AI data center demand and the HDFO CPU ramp. Automotive and Industrial revenues are expected to grow in the mid-single digits, while Consumer revenues are projected to increase in the mid-teens.

The shift toward higher-value advanced technologies is expected to offset weaker Communications revenues and support further margin expansion.

AMKR Faces Communications Pressure

Faust said Communications revenues are expected to decline in the high single digits sequentially, an unusual seasonal pattern for the third quarter.

She attributed the outlook to the migration of system-in-package production to Vietnam, memory supply constraints and changes in customer build patterns. Android revenue had already declined 20% in the second quarter.

Engel added that the SiP transition will not be limited to one quarter. One application area is expected to face a headwind into the fourth quarter and first half of 2027.

Amkor Uses Capacity Shifts to Support Growth

Engel described the move of SiP production from Korea to Vietnam as an efficiency initiative that also frees Korean capacity for expanding Computing programs.

He said several advanced technology platforms are operating at full capacity, while overall utilization improved from the 50% range into the 70% range during the first half.

The company is also expanding in Arizona, Korea, Vietnam, Portugal and Taiwan. Phase 1 of the Arizona facility is fully committed, while additional Korean cleanroom capacity is aimed at 2028 and beyond.

AMKR Details Partnership Economics

Engel said Amkor’s 10-year agreement with TSMC is designed to expand advanced packaging and test capacity while strengthening the U.S. semiconductor supply chain.

He also said the multi-year NVIDIA partnership aligns technology roadmaps and supports packaging capacity for next-generation AI infrastructure.

During the Q&A, management clarified that the NVIDIA arrangement does not require a sharp step-up in R&D spending. A $1.5 billion customer prepayment is expected in 2027 and would be returned through services delivered over five to 10 years.

Amkor Explains the Margin Step-Up

Faust said the more than 250-basis-point sequential gross margin expansion in the second quarter was driven about two-thirds by volume and utilization and one-third by favorable mix.

For the third quarter, she said product mix should be the primary margin driver as Computing accelerates and Communications declines.

Management cautioned that future margin progress will depend on utilization and mix. Engel said underutilized U.S. manufacturing could pressure gross and operating margins as Arizona ramps.

AMKR Maintains an Investment-Heavy Posture

Management’s tone remained confident on demand, customer engagement and advanced packaging opportunities, but disciplined on execution and capacity allocation.

Amkor kept 2026 capital expenditures at $2.5 billion to $3 billion. Roughly 65% to 70% is expected to fund facilities expansion, with 30% to 35% directed toward HDFO, test and other advanced packaging capacity.

Zacks Signals for Amkor

AMKR carries a Zacks Rank #2 (Buy). Its Value Score of B, Growth Score of A and VGM Score of B indicate favorable characteristics across valuation and growth, while the Momentum Score of D points to weaker near-term price-trend support.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The combination of a Zacks Rank #2 and an A or B Style Score is viewed favorably under the Zacks framework. Still, the Zacks Rank can change as analysts revise earnings estimates following the newly reported results.

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