7 Cheap Technology Stocks To Buy Right Now

5. Amkor Technology Inc. (NASDAQ:AMKR)

Forward Price-to-Earnings Ratio: 12.06

Average Upside Potential: 40.50%

Number of Hedge Fund Holders: 39

Amkor Technology Inc. (NASDAQ:AMKR) is a semiconductor product packaging and test services provider with a wide range of packaging and testing services for integrated circuits (ICs), including flip chip, ball grid array (BGA), and wire bond packaging. Its services help semiconductor manufacturers improve the performance, reliability, and cost-effectiveness of their ICs.

The company made $1.46 billion in Q2 2024 revenue, recording a year-over-year increase of 0.24% and a 7% rise sequentially, driven by demand for advanced packaging, notably for premium tier smartphones within the iOS ecosystem and 2.5D technology for AI solutions. Communications market revenue grew 10% sequentially. Revenue within the Android supply chain declined sequentially but rose 20% year-over-year. Automotive and industrial market revenue was also down 2% sequentially.

In this quarter, the company remained focused on its strategic priorities to strengthen its market leadership, and successfully expanded its 2.5D technology capacity in Korea and qualified advanced SiP and memory technology in Vietnam. Notably, it achieved a major milestone by establishing a US manufacturing presence for advanced packaging.

The advanced packaging technology supports various smartphone applications, from RF and cameras to AI-enabled app processors. The SiP and flip-chip technologies enable high-speed, high-density interconnect.

The company recently reached a preliminary agreement with the US Department of Commerce for up to $400 million in grants under the CHIPS and Science Act. These funds will support the construction of a new facility in Arizona, focusing on advanced packaging and testing for high-performance computing, AI, communications, and automotive markets.

All of these developments contribute to the development of a robust US semiconductor supply chain while Amkor Technology Inc. (NASDAQ:AMKR) joins a strong ecosystem of front-end fabs, IDMs, and suppliers. These developments also evidently position the company for long-term growth.