What Happened?

Shares of semiconductor packaging and testing company Amkor Technology (NASDAQ: AMKR) jumped 15.5% in the afternoon session after Aletheia Capital initiated coverage on the company with a 'Buy' rating and a $62 price target. The firm highlighted Amkor's position as a leading U.S.-based provider for semiconductor assembly and testing. The positive outlook was based on rising demand for advanced chip packaging, known as CoWoS, and the America Manufacturing initiative. Aletheia Capital projected significant growth in the company's CoWoS sales and earnings per share over the next few years. The bullish analyst coverage was supported by Amkor's third-quarter financial results, where both revenue and profit exceeded Wall Street's expectations. The company reported revenue of $1.99 billion and earnings per share of $0.51, beating estimates. However, its revenue guidance for the fourth quarter was slightly below analyst forecasts.

Is now the time to buy Amkor? Access our full analysis report here.

What Is The Market Telling Us

Amkor’s shares are quite volatile and have had 18 moves greater than 5% over the last year. But moves this big are rare even for Amkor and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 5 days ago when the stock gained 1.8% on the news that DA Davidson raised its price target on the company, and news emerged of a significant investment in its South Korean operations. The analyst firm maintained its 'Buy' rating while increasing its price target to $40 from $30, signaling strong confidence in the company's growth prospects. Further boosting investor optimism, it was reported that Amkor Technology was one of seven global firms that planned to invest a combined $9 billion into Korea's key industries, such as artificial intelligence and semiconductors. As part of this initiative, Amkor intended to expand its semiconductor back-end processing operations.

Amkor is up 42.3% since the beginning of the year, and at $37 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 $3,043.

While Wall Street chases Nvidia at all-time highs, an under-the-radar semiconductor supplier is dominating a critical AI component these giants can’t build without. Click here to access our full research report.