Amkor Technology Stock Plummets on Weak Third-Quarter Revenue Forecast

Amkor Technology (NASDAQ: AMKR) shares plunged in morning trading after the semiconductor packaging and test services company issued a third-quarter revenue forecast that widely missed Wall Street estimates, overshadowing a record second-quarter performance.

The stock fell 22.9% from its prior close of $60.71, a sharp decline driven almost entirely by the company's forward-looking guidance rather than its past results.

Guidance Misses Expectations

Amkor announced that it anticipates third-quarter revenue to be in the range of $1.95 billion to $2.05 billion. This projection falls well below the analyst consensus estimate of approximately $2.12 billion, signaling a significant deceleration for the company.

The disappointing outlook came despite a strong second quarter in which Amkor reportedly beat expectations on both revenue and earnings per share. However, investors focused heavily on the future headwinds highlighted by management.

Key Headwinds Identified

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The company attributed the weak Q3 forecast to two primary factors:

• Manufacturing Transition: A projected decline in communications revenue is tied to the ongoing migration of its system-in-package (SiP) manufacturing from South Korea to Vietnam. Management indicated this transition would weigh on financial results through the fourth quarter and into early 2027.
• Memory Market Softness: Amkor also cited continued weakness in demand related to the memory market as a contributing factor to the lower-than-expected guidance.

Analyst and Market Reaction

In response to the report, B. Riley cut its price target on Amkor stock to $65 from $75, though it maintained a Neutral rating. The negative sentiment was compounded by recent insider selling activity, with the source noting 20 open-market sales and zero purchases over the last six months.

The broader market provided little support, with the NASDAQ Composite down 0.7%. However, with the S&P 500 flat, the significant drop in Amkor's stock was clearly driven by company-specific news rather than macroeconomic pressures.