10 Undervalued Semiconductor Stocks to Buy According to Analysts

5. Amkor Technology, Inc. (NASDAQ:AMKR)

Upside Potential: 28%

Fwd. PE: 19.4

Amkor Technology, Inc. (NASDAQ:AMKR) holds the title as the world’s largest provider of outsourced semiconductor assembly and test (OSAT) services. The company caters to a diverse range of industries, including communication, automotive, industrial, computing, and consumer sectors, providing manufacturing services for products such as smartphones, electric vehicles, data centers, artificial intelligence, and wearables. Amkor Technology, Inc.’s (NASDAQ:AMKR) growth profile is strongly supported by the rapidly evolving sectors of generative AI, automotive electrification, and connected devices. With the ever-increasing demand for chips in these areas, the company is advantageously placed as packaging and testing are critical components of the semiconductor supply chain.

Amkor Technology, Inc. (NASDAQ:AMKR) is prioritizing design engagement with original equipment manufacturers (OEMs) and semiconductor companies to enhance packaging innovation. In October 2024, the company made a strategic move by signing an agreement with Taiwanese foundry player TSMC to collaborate and bring advanced packaging and test capabilities to Arizona. Under this agreement, TSMC will utilize Amkor Technology, Inc.’s (NASDAQ:AMKR) services at its planned facility in Peoria, Arizona, as well as leverage these services for its customers at its Phoenix facility. Amkor Technology, Inc. (NASDAQ:AMKR) is executing its expansion plan effectively, with approximately 11%-12% of its annual sales allocated to expansion capital expenditures.