UBS Upgrades Amkor to Buy, Raises Price Target to $90 on $1.5B Nvidia Partnership

According to CNBC, UBS upgraded Amkor Technology (NASDAQ: AMKR) to Buy on July 24, raising its price target from $80 to $90 per share, representing approximately 38% upside potential. The upgrade follows Amkor's announcement of a multi-year strategic partnership expansion with Nvidia (NASDAQ: NVDA) involving advanced chip packaging services.

The partnership contract is valued at $1.5 billion and includes upfront cash payments. UBS analyst Randy Abrams estimated that Amkor will capture approximately 60% of Nvidia's Vera CPU packaging volume. The bank projects Amkor will generate an additional $1.1 billion in revenue from advanced packaging services alone in 2027.