Amkor Tech's Stock Surges 18% as $240M Trading Volume Hits Top 500 Rank Earnings Outlook and Strategic Shifts Fuel Investor Frenzy

Amkor Technology (AMKR) surged 18.13% on 29 July 2025, with trading volume rising 173.12% to $240 million, reflecting strong investor interest. The stock’s performance coincided with the company’s updated Q3 2025 earnings guidance, which projected EPS of $0.34–$0.48, surpassing the $0.432 consensus, and revenue of $1.9–$2.0 billion, exceeding the $1.8 billion estimate. Analysts remain cautious, with seven “hold” ratings and three “buy” ratings, averaging a $26.50 price target.

Amkor’s Q2 2025 results highlighted sequential revenue growth of 14% to $1.51 billion, driven by robust demand in advanced packaging for AI and high-performance computing. However, gross margin contracted to 12%, pressured by cost inflation and underutilized manufacturing assets. The company emphasized strategic shifts, including expanding production in Vietnam and optimizing its Japan footprint to align with market conditions. Management also noted progress in advanced packaging technologies like High-Density Fan-Out and 2.5D interposer solutions, critical for next-generation chip demand.

Institutional investors increased holdings in Q1 2025, with entities like UBS and Royal Bank of Canada significantly boosting stakes. This reflects confidence in Amkor’s long-term positioning in semiconductor packaging. The firm also announced a $0.0827 quarterly dividend, maintaining a 1.56% yield. Despite margin challenges, Amkor’s Q3 guidance anticipates sequential revenue growth of 27%, with gross margin expected to rebound to 13–14.5% as utilization improves.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day resulted in a 166.71% return from 2022 to the present, significantly outperforming the benchmark return of 29.18%. The strategy’s excess return was 137.53%, and it achieved a CAGR of 31.89%. With a maximum drawdown of 0.00% and a Sharpe ratio of 1.14, the strategy demonstrated strong risk-adjusted performance and capital appreciation.