We recently published a list of 10 Stocks That Could Skyrocket After Jensen Huang’s Earnings Call. In this article, we are going to take a look at where Amkor Technology, Inc. (NASDAQ:AMKR) stands against other stocks that could skyrocket after Jensen Huang’s earnings call.
DeepSeek AI revelations were the biggest concern for investors when the month started. Many had started questioning if investing so much in AI infrastructure was worth it. Since then, the market sentiment has turned positive again and many of the stocks have recovered. We are now closing in on the most anticipated earnings call of the year so far: Jensen Huang telling us on 26th February how his company performed in the previous quarter.
Investing in the supply chain of big companies has proven beneficial over the years. As the stronger and the bigger company grows, it helps the smaller companies which are an important part of the supply chain also grow.
The Santa Clara-based chipmaker’s earnings will affect the whole market, not just its suppliers. Analysts expect an earnings beat on both the EPS and revenue. This is what the KeyBanc analysts had to say about the earnings:
“Despite prior concerns regarding constraints associated with the ramp of GB200 NVL servers, we expect NVDA to report strong F4Q results, which we anticipate will solidly beat, and to guide F1Q conservatively and moderately higher than consensus.”
We decided to take a look at companies that will benefit from the above-mentioned earnings beat. To come up with our list of 10 stocks that could skyrocket after Jensen Huang’s earnings call, we looked at stocks that are major suppliers of the company.
A close up of a micro-electro-mechanical systems (MEMS) package awaiting testing.
Amkor Technology, Inc. (NASDAQ:AMKR)
Amkor Technology, Inc. (NASDAQ:AMKR) is an outsourced semiconductor packaging and test services provider. The company offers system-level and final tests, turnkey packaging and test services, and drop shipment services. It provides its services to original equipment manufacturers, integrated device manufacturers, contract foundries, and fabless semiconductor companies.
The company’s stock fell about 10% right after it reported weak Q4 results on the 10th of February. It reported a 7% year-over-year decline in revenue while adjusted EBITDA was also down 7% YoY. Gross margins stayed at 15.1% marking the highest margins among all four quarters of 2024.
On top of the weak results, the company presented guidance for Q1 2025 which was lower than estimates. It expects a 7% YoY and 22% QoQ decline in revenue going forward, while the gross margins are predicted to reduce to 11.5%, a level not seen in the last decade.
Wall Street analysts expect 2025 to be a much better year for Amkor Technology (NASDAQ:AMKR) than 2024. The company is facing some short-term challenges including competitive pressure and geopolitical uncertainty.
“For 2025, we expect our Communications business to be muted in the first half followed by above seasonal growth in the second half. We’re closely collaborating with our strategic customer and are confident in recovering the SiP socket in the next generation iOS phones.”
Overall, AMKR ranks 8th on our list of stocks that could skyrocket after Jensen Huang’s earnings call. While we acknowledge the potential of AMKR as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as AMKR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
