Core Viewpoint - Investors should closely monitor Amkor Technology, Inc. (AMKR) due to significant movements in the options market, particularly the March 20, 2026 $3 Call which has high implied volatility [1] Group 1: Implied Volatility - Implied volatility indicates the market's expectation of future price movements, with high levels suggesting anticipation of a significant price change or an upcoming event that could lead to a rally or sell-off [2] - High implied volatility in options can attract traders looking to sell premium, as they aim to benefit from the decay of options value if the stock does not move as much as expected [4] Group 2: Analyst Sentiment - Amkor currently holds a Zacks Rank 3 (Hold) in the Electronics – Semiconductors industry, which is in the top 36% of the Zacks Industry Rank [3] - Over the past 60 days, two analysts have raised their earnings estimates for the current quarter, while one has lowered them, resulting in a net increase of the Zacks Consensus Estimate from 19 cents per share to 23 cents [3]

Investment Rating - The industry investment rating is "Recommended," indicating an expected increase in the industry index exceeding the benchmark index by more than 5% in the next 3-6 months [49]. Core Insights - Amkor reported Q4 2025 revenue of $1.889 billion, a year-on-year increase of 15.9%, exceeding guidance [3][7]. - The gross profit for Q4 2025 was $315 million, with a gross margin of 16.7%, reflecting a quarter-on-quarter increase of 240 basis points [3][7]. - Net profit for Q4 2025 reached $172 million, with earnings per share of $0.69 [3][7]. - The company expects Q1 2026 revenue to be between $1.6 billion and $1.7 billion, representing a year-on-year growth of 25% [4][15]. Summary by Sections 1. Q4 2025 Operating Performance - Overall performance showed Q4 2025 revenue of $1.889 billion, a quarter-on-quarter decrease of 5.0% but a year-on-year increase of 15.9%, surpassing expectations [3][7]. - Gross profit was $315 million, with a gross margin of 16.7%, and net profit was $172 million, translating to earnings per share of $0.69 [3][7]. 2. Performance by End Market - **Communication Market**: Revenue grew by 28% year-on-year in Q4 2025, driven by increased market share in the current generation of iOS smartphones [9]. - **Automotive and Industrial Market**: Revenue increased by 25% year-on-year in Q4 2025, supported by strong growth in advanced automotive content in the ADAS application area [10]. - **Consumer Market**: Revenue decreased by 10% year-on-year in Q4 2025, reflecting the product lifecycle of high-volume wearable products launched in the second half of 2024 [11]. - **Computing Market**: Revenue grew by 6% year-on-year in Q4 2025, primarily due to strong demand for AI-related PC devices and network infrastructure [12]. 3. Company Guidance for Q1 2026 - The company anticipates Q1 2026 revenue between $1.6 billion and $1.7 billion, with a year-on-year growth of 25% [4][15]. - Gross margin is expected to be between 12.5% and 13.5%, with net profit projected between $45 million and $70 million, and earnings per share expected to be between $0.18 and $0.28 [4][15]. 4. Capital Expenditure - The company expects capital expenditures in 2026 to increase to between $2.5 billion and $3 billion, with 65% to 70% allocated for facility expansion, including the first phase of the Arizona project [4][15]. - Approximately 30% to 35% will be used for high-density fiber optics, testing, and other advanced packaging capacity [4][15].

Financial Performance - In Q4 2025, the company reported revenue of $1.888 billion, a year-over-year increase of 15.89%, and a net profit of $172 million, up 62.58% [1] - The gross margin improved to 16.66%, significantly up from 14.32% in the previous quarter [1] - For the full year 2025, total revenue reached $6.708 billion, a 6.18% increase, with a net profit of $374 million [1] - Operating cash flow was $1.096 billion, and free cash flow amounted to $191 million [1] - As of the end of 2025, the company had $1.99 billion in cash and short-term investments, with total debt of $1.45 billion, indicating a solid financial position [1] - The annual gross margin was 13.99%, and the net profit margin was 5.57% [1] - The operating profit margin for Q4 reached 9.80%, reflecting improved operational efficiency [1] - Return on equity (ROE) was 8.67%, and return on assets (ROA) was 4.96% [1] Company Outlook - The company expects Q1 2026 revenue to be between $1.6 billion and $1.7 billion, with a gross margin between 12.5% and 13.5% [2] - Net profit guidance for Q1 2026 is projected to be between $45 million and $70 million [2] - The capital expenditure plan for the full year is set at $2.5 billion to $3 billion to support the expansion of advanced packaging business [2] Stock Performance - As of February 10, 2026, the stock price was $53.46, with a daily increase of 1.79% and a year-to-date gain of 35.41% [3] - The price-to-earnings ratio (TTM) stood at 35.64, and the price-to-sales ratio was 1.47 [3]

Core View - Amkor expects first quarter GAAP EPS between 18 cents and 28 cents, exceeding the analyst estimate of 21 cents, with revenue projected between $1.6 billion and $1.7 billion, above the $1.53 billion estimate [1] Analyst View - Amkor delivered a beat-and-raise quarter, with most metrics exceeding consensus expectations [2] - The company guided FY26 CapEx to a record level, significantly above Street expectations, indicating management's confidence in long-term advanced packaging growth [2] - Following the earnings call, estimates for FY26 and FY27 were modestly increased [2] Revenue Growth Projections - Revenue is expected to rise by 11% in FY26 and 16% in FY27, driven by cyclical recovery and the ramp-up of 2.5D/HDFO technology, initially in Korea and later in Arizona [3] Technical Analysis - Amkor is trading above key moving averages, indicating a bullish trend, positioned 5.1% above its 20-day SMA, 13.9% above its 50-day SMA, and 73.6% above its 200-day SMA [4] - The RSI is at 61.22, suggesting a neutral but slightly bullish stance, indicating potential for upward movement [5] - Over the past 12 months, Amkor's stock has surged by 113.34%, reflecting strong investor interest and positive sentiment [5] Stock Performance - Amkor's stock is currently trading at 92.2% of its 52-week range, nearing recent highs, indicating a strong uptrend [6] - At the time of publication, Amkor shares were up 0.71% at $54.25, close to its 52-week high of $55.17 [6]

Core Insights - Amkor Technology reported a full-year revenue of $6.7 billion, reflecting a 6% increase, with strong growth across computing, automotive, consumer, and stabilized communications markets [1][4][6] - The company achieved record revenue in computing and expects continued growth in 2026, particularly in advanced packaging and computing sectors [4][5][16] Financial Performance - For the fourth quarter, Amkor reported revenue of $1.89 billion and EPS of $0.69, exceeding guidance, with a year-over-year increase of 16% despite a sequential decline of 5% [3][6] - Gross profit for the quarter was $315 million, with a gross margin of 16.7%, including a one-time benefit of approximately $30 million from asset sales [2][6] - Full-year gross profit was $939 million, with a gross margin of 14%, and net income totaled $374 million, resulting in an EPS of $1.50 [7] 2026 Guidance and Strategy - Amkor guided Q1 2026 revenue to be between $1.6 billion and $1.7 billion, indicating a 25% year-over-year growth at the midpoint, with expected lower seasonal margins [5][12] - The company plans capital expenditures of $2.5 billion to $3.0 billion for 2026, focusing on facility expansion and advanced packaging capacity [14][15] - Strategic priorities include enhancing technology leadership, expanding geographic footprint, and investing in advanced packaging platforms critical for AI and high-performance computing [9][10][11] Market Outlook - The company anticipates strong growth in computing, expected to exceed 20%, along with continued growth in advanced automotive, while other segments are projected to grow in single digits [16][19] - Amkor is optimistic about demand in communications, particularly related to iOS, and expects a solid performance in Android markets [18] - In the automotive sector, while overall unit sales are flat, the semiconductor content per vehicle is increasing due to the shift towards hybrid and electric vehicles [19] Operational Developments - The Vietnam facility reached break-even in Q4, and construction of the Arizona campus is underway, with a focus on expanding advanced packaging capacity [8][11][20] - The company is prioritizing high-density fan-out (HDFO) and other advanced packaging technologies, with new programs expected to launch in 2026 [10][11]

Core Viewpoint - Amkor Technology reported strong financial results for the quarter ended December 2025, with significant year-over-year growth in revenue and earnings per share, exceeding market expectations [1]. Financial Performance - Revenue for the quarter was $1.89 billion, reflecting a year-over-year increase of 15.9% [1]. - Earnings per share (EPS) for the same period was $0.69, compared to $0.43 a year ago, indicating substantial growth [1]. - The reported revenue surpassed the Zacks Consensus Estimate of $1.83 billion by 3.35% [1]. - The company achieved an EPS surprise of 60.47%, with the consensus EPS estimate being $0.43 [1]. Market Comparison - Over the past month, shares of Amkor Technology have returned -5.6%, while the Zacks S&P 500 composite experienced a -0.2% change [3]. - The stock currently holds a Zacks Rank 1 (Strong Buy), suggesting potential for outperformance in the near term [3]. End Market Distribution - Communications (smartphones, tablets) accounted for 49% of revenue, slightly above the two-analyst average estimate of 48.4% [4]. - Consumer markets (AR & gaming, connected home, home electronics, wearables) represented 14%, exceeding the estimated 13.7% [4]. - Automotive, industrial, and other sectors (ADAS, electrification, infotainment, safety) contributed 18%, closely aligning with the average estimate of 18.1% [4]. - Computing (data center, infrastructure, PC/laptop, storage) made up 19%, in line with the two-analyst average estimate of 19.8% [4].

分组1 - Amkor Technology reported quarterly earnings of $0.69 per share, exceeding the Zacks Consensus Estimate of $0.43 per share, and showing an increase from $0.43 per share a year ago, resulting in an earnings surprise of +60.47% [1] - The company achieved revenues of $1.89 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 3.35%, and up from $1.63 billion year-over-year [2] - Amkor Technology has outperformed the S&P 500, gaining about 25% since the beginning of the year compared to the S&P 500's gain of 1.3% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.23 on revenues of $1.56 billion, and for the current fiscal year, it is $1.59 on revenues of $7.1 billion [7] - The Electronics - Semiconductors industry, to which Amkor Technology belongs, is currently ranked in the top 25% of over 250 Zacks industries, indicating a favorable outlook for the sector [8] - Amkor Technology holds a Zacks Rank 1 (Strong Buy), suggesting that the stock is expected to outperform the market in the near future [6]

Financial Data and Key Metrics Changes - Q4 2025 revenue was $1.89 billion, down 5% sequentially but up 16% year-on-year, with EPS at $0.69, outperforming guidance [5][12] - Full year 2025 revenue grew 6% to $6.7 billion, with net income of $374 million and EPS of $1.50 [14][15] - Gross profit for Q4 was $315 million, with a gross margin of 16.7% [13] - Full year gross margin was 14%, impacted by the ramp-up of the Vietnam facility [15] Business Line Data and Key Metrics Changes - Communications revenue grew 28% year-on-year in Q4, with a 1% increase for the full year [12] - Computing revenue increased 6% year-on-year in Q4 and 16% for the full year, driven by AI-related devices [12] - Automotive and industrial revenue rose 25% year-on-year in Q4 and 8% for the full year, supported by advanced automotive content [12] - Consumer revenue declined 10% year-on-year in Q4 but grew 9% for the full year [13] Market Data and Key Metrics Changes - The computing segment is expected to grow over 20% in 2026, driven by AI and HPC demand [10][11] - Communications and automotive markets are also projected to see strong growth in 2026 [16] Company Strategy and Development Direction - The company aims to elevate technology leadership, expand geographic footprint, and enhance strategic partnerships [8] - Focus on advanced packaging platforms, including HDFO and test, critical for AI and HPC [9] - Construction of the Arizona campus is underway, with significant capital expenditures planned for 2026 [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating market shifts and geopolitical challenges, positioning the company for growth [5][6] - The outlook for Q1 2026 revenue is between $1.6 billion and $1.7 billion, reflecting a 25% year-on-year increase [16] - The effective tax rate for 2026 is expected to be around 20% [16] Other Important Information - Capital expenditures for 2026 are projected to be between $2.5 billion and $3 billion, with a significant portion for facility expansion [17] - The company held $2 billion in cash and short-term investments at year-end, with total liquidity at $3 billion [16] Q&A Session Summary Question: CapEx guidance and investment changes - Management clarified that the high CapEx guidance includes significant spending for the Arizona facility and equipment for advanced packaging [19][21] Question: Government incentives and CapEx - The CapEx number is net of government incentives, which will come in after the investment periods [24][25] Question: Computing segment growth and data center programs - The computing segment is expected to see a significant ramp in data center HDFO programs, with one program anticipated to reach high volume [27][29] Question: Communication segment outlook - Management noted relative strength in the Android segment and positive expectations for iOS in Q1 [46][48] Question: Partnership with TSMC - The partnership with TSMC is ongoing, focusing on technology and manufacturing needs for the U.S. supply chain [49][50] Question: Balance sheet management and cash needs - The company can operate comfortably with $500 million on the balance sheet and expects a decrease in interest expense despite potential debt increases [58][59]

Financial Data and Key Metrics Changes - Q4 2025 revenue was $1.89 billion, down 5% sequentially but up 16% year-on-year, with full year revenue growing 6% to $6.7 billion [12][14] - EPS for Q4 was $0.69, with net income of $172 million, and full year net income was $374 million, resulting in EPS of $1.50 [14][15] - Gross profit for Q4 was $315 million, with a gross margin of 16.7%, while full year gross profit was $939 million, with a gross margin of 14% [13][15] Business Line Data and Key Metrics Changes - Communications revenue grew 28% year-on-year in Q4, and 1% for the full year, driven by strong demand in iOS [12][14] - Computing revenue increased 6% year-on-year in Q4 and 16% for the full year, supported by AI-related PC devices [12][14] - Automotive and industrial revenue rose 25% year-on-year in Q4 and 8% for the full year, driven by advanced automotive content [12][14] - Consumer revenue declined 10% year-on-year in Q4 but grew 9% for the full year [12][14] Market Data and Key Metrics Changes - The computing segment is expected to grow over 20% in 2026, with strong contributions from AI and HPC [10][11] - Communications, computing, and automotive markets are projected to see strong year-on-year growth in Q1 2026 [16] - The automotive market is expected to remain flat in unit sales, but increased semiconductor content per vehicle is anticipated [40] Company Strategy and Development Direction - The company aims to elevate technology leadership, expand geographic footprint, and enhance strategic partnerships [8][10] - Focus on advanced packaging platforms, including HDFO and Flip Chip, critical for next-generation AI and HPC [9][10] - Construction of the Arizona campus is underway, with significant capital expenditures planned for facility expansion and advanced packaging capacity [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating market shifts and geopolitical challenges, emphasizing strong customer engagements [5][11] - The company anticipates a strong start to 2026, with revenue guidance for Q1 between $1.6 billion and $1.7 billion, reflecting a 25% year-on-year increase [16][17] - Management is monitoring export control and trade policies, which are factored into Q1 guidance [11] Other Important Information - Capital expenditures for 2026 are expected to increase to $2.5 billion-$3 billion, with a significant portion allocated for facility expansion [17] - The company held $2 billion in cash and short-term investments at year-end, with total liquidity of $3 billion, a 30% increase from the prior year [16] Q&A Session Summary Question: CapEx guidance and its implications - The CapEx projection includes 65%-70% for facilities, with significant spending on the Arizona project expected to peak in 2026 [19][21] - Customer commitments for HDFO projects are contributing to the high CapEx numbers [20][23] Question: Growth expectations in computing - Computing is expected to show 20% year-on-year growth, with data center HDFO programs anticipated to ramp significantly [27][29] Question: Margin outlook and impacts - Q1 margins are impacted by a one-time asset sale, but the company expects to achieve a 30% incremental flow-through for the full year [41][43] Question: Partnership with TSMC - The partnership with TSMC is ongoing, focusing on technology and manufacturing needs in the U.S., with increasing customer interest [49][51]

Financial Data and Key Metrics Changes - Q4 2025 revenue was $1.89 billion, down 5% sequentially but up 16% year-on-year, with EPS at $0.69, outperforming guidance [11][4] - Full year 2025 revenue grew 6% to $6.7 billion, with gross profit of $939 million and gross margin at 14% [14][13] - Net income for 2025 was $374 million, resulting in EPS of $1.50, with EBITDA at $1.16 billion and EBITDA margin at 17.3% [14][13] Business Line Data and Key Metrics Changes - Communications revenue grew 28% year-on-year in Q4, with a 1% increase for the full year, driven by iOS demand [11] - Computing revenue increased 6% year-on-year in Q4 and 16% for the full year, supported by AI-related PC devices [11] - Automotive and industrial revenue rose 25% year-on-year in Q4 and 8% for the full year, driven by advanced automotive content [11] - Consumer revenue declined 10% year-on-year in Q4 but grew 9% for the full year, reflecting product lifecycle impacts [12] Market Data and Key Metrics Changes - The computing segment is expected to grow over 20% in 2026, with strong contributions from AI and HPC [10] - Communications, computing, and automotive markets are projected to see strong year-on-year growth in Q1 2026 [15] - The automotive market is gradually recovering, with mainstream automotive showing three consecutive quarters of growth [11] Company Strategy and Development Direction - The company aims to elevate technology leadership, expand geographic footprint, and enhance strategic partnerships [6] - Focus on advanced packaging platforms, including HDFO and test, critical for AI and high-performance computing [6] - Construction of the Arizona campus is underway, with significant investments planned for 2026 [10][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating market shifts and geopolitical challenges, emphasizing strong execution [4] - The company anticipates continued growth in advanced packaging and computing, with a focus on margin improvement [9] - Management highlighted the importance of customer commitments and partnerships in supporting capacity investments [21][30] Other Important Information - Capital expenditures for 2025 were $905 million, with expectations for 2026 CapEx to increase to $2.5 billion-$3 billion [14][15] - The company held $2 billion in cash and short-term investments at year-end, with total liquidity at $3 billion [15] Q&A Session Summary Question: CapEx guidance and investment changes - Management clarified that the high CapEx guidance includes significant spending for facilities and equipment, with a focus on supporting advanced packaging growth [18][19] Question: Government incentives and CapEx - Management indicated that government incentives would come in on a lag, with minimal offsets in the 2026 guidance [24] Question: Computing segment growth and data center programs - Management expects data center HDFO programs to ramp significantly, contributing meaningfully to revenue [26][28] Question: Communication segment outlook - Management noted relative strength in iOS and a stable outlook for Android, with expectations for premium tier benefits [44] Question: Partnership with TSMC and CapEx impact - Management confirmed ongoing discussions with TSMC regarding U.S. manufacturing and emphasized strong customer interest in the Arizona project [45][48] Question: Balance sheet management and cash needs - Management stated that the company can operate comfortably with $500 million on the balance sheet and expects a decrease in interest expense despite potential debt increases [54]