Amkor Technology (AMKR) shares fell more than 24% on Tuesday, breaking below the 200-day moving average for the first time since August 2025. The drop followed the company's third-quarter revenue forecast of $1.95 billion to $2.05 billion on Monday, below the consensus estimate of $2.12 billion. B. Riley lowered its price target on the stock to $65 from $75 while maintaining a Neutral rating, citing near-term challenges including weakness in communications and program delays. The decline marked AMKR's largest single-day slump since March 2020, occurring amid a broader selloff in AI-related semiconductor stocks.
B. Riley Cuts Price Target to $65, Cites Communications Weakness
B. Riley reduced its price target on Amkor Technology to $65 from $75 while keeping a Neutral rating on the shares. The firm highlighted a strong second-quarter performance driven by improving compute demand and upside in gross margins, which supports the company's long-term earnings outlook. However, the analyst noted near-term challenges including weakness in communications, program delays, and pressure from AI sentiment. The stock has declined nearly 41% over the past month. Morgan Stanley raised its price target on the stock to $70 from $69 and maintained an Equal Weight rating on the shares.
Q3 Revenue Forecast Falls Short of $2.12 Billion Consensus
Amkor Technology forecast third-quarter revenue between $1.95 billion and $2.05 billion on Monday, below the consensus estimate of $2.12 billion. The company stated its communications segment is expected to see a softer-than-normal third quarter, impacted by several industry and operational headwinds. CFO Megan Faust identified three key factors shaping the outlook: tight memory supply, changes in customer production timelines, and the planned relocation of System-in-Package (SiP) operations to Vietnam. "For the third quarter, we expect Communications revenue to decline in the high single digits sequentially, which is a departure from the typical seasonal patterns," Faust said.
Retail Sentiment Remains Extremely Bullish Despite 24% Drop
Retail sentiment surrounding AMKR on Stocktwits trended in the extremely bullish zone over the past 24 hours, while message volumes surged more than 1,200%. The stock has gained over 7% so far this year.
FAQ
What caused AMKR stock to fall more than 24% on Tuesday?
AMKR shares fell more than 24% on Tuesday after the company forecast third-quarter revenue between $1.95 billion and $2.05 billion on Monday, below the consensus estimate of $2.12 billion.
What price target did B. Riley set for Amkor Technology?
B. Riley lowered its price target on Amkor Technology to $65 from $75 while maintaining a Neutral rating on the shares.
Why did Amkor Technology lower its Q3 revenue forecast?
CFO Megan Faust cited three factors: tight memory supply, changes in customer production timelines, and the planned relocation of System-in-Package (SiP) operations to Vietnam. The communications segment is expected to decline in the high single digits sequentially.
