What Happened?
Shares of semiconductor packaging and testing company Amkor Technology (NASDAQ:AMKR) jumped 7.4% in the afternoon session after reports indicated that Intel had outsourced its high-end chip packaging production to Amkor for the first time.
This marked Intel's first-ever move to outsource its EMIB process, a type of advanced packaging. According to reports, Intel established the process at Amkor's facility in South Korea due to high demand for its packaging services, which are important for the AI industry. The news followed other positive developments for Amkor, which recently reported stronger-than-expected third-quarter earnings, beating forecasts for both revenue and profit. In addition, financial firm Aletheia Capital initiated coverage on the stock with a 'Buy' rating.
The shares closed the day at $40.53, up 7.4% from previous close.
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What Is The Market Telling Us
Amkor’s shares are very volatile and have had 22 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 8 days ago when the stock gained 2.8% on the news that renewed enthusiasm for Alphabet reinvigorated the artificial intelligence trade, propelling a market rebound heading into the Thanksgiving holiday. The Nasdaq index jumped 2.6% and the S&P 500 gained 1.6%, driven by a 5% rally in Alphabet following the announcement of its upgraded Gemini 3 AI model. This optimism spilled over into the broader tech sector, lifting shares of Broadcom, Micron, and Palantir significantly. The rally built on momentum from the previous trading session, sparked by the New York Fed president keeping the door open for a December interest rate cut.
Amkor is up 55.5% since the beginning of the year, and at $40.45 per share, has set a new 52-week high. Investors who bought $1,000 worth of Amkor’s shares 5 years ago would now be looking at an investment worth $2,707.
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