BofA Initiates Coverage on $AMKR with Buy Rating, PT $70 Analyst comments: See Amkor as an underappreciated beneficiary of rising semiconductor packaging complexity, AI/HPC-related advanced packaging demand, improving utilization, and U.S. supply-chain regionalization. Advanced Products represented 82% of 2Q26 revenue, and we see Amkor benefiting from opportunities across 2.5D, HDFO-RDL, HDFO-bridge, co-packaged optics, and test. Computing is expected to become the company’s largest end market by 2028, supported by programs including NVIDIA’s Vera CPU, Microsoft’s Cobalt CPU, and later AMD’s Venice server CPU. The planned Arizona facility adds strategic value by providing U.S.-based advanced packaging capacity. Phase 1 is projected to be fully committed, with Apple and NVIDIA identified as key customers, a 10-year TSMC agreement, and an approximately $1.5B NVIDIA prepayment expected in 2027. Phase 1 targets roughly $1B of annual revenue and gross margin above 30% at scale by 2030. We forecast EPS increasing from $1.51 in 2025 to $3.41 in 2028E, representing a 31% CAGR, as mix and utilization improve. Our $70 price objective is based on 21x our 2028E EPS estimate of $3.41. BofA also sees meaningful operating leverage as utilization improves, with average utilization moving from the 50% range to the 70% range and Q2 gross margin expanding to 16.8%. Computing is expected to become Amkor’s largest end market by 2028, rising to roughly 35% of revenue from 20% in 2025. AMKR currently trades at about 14x BofA’s 2028 EPS estimate versus an OSAT peer median near 20x, while management’s longer-term framework targets ~$11B+ of revenue, ~22%+ gross margin and ~$5.00+ EPS by 2030 Key risks include higher capital intensity and negative free cash flow through the investment cycle, Arizona ramp and execution risk, semiconductor cyclicality, customer and mobile concentration, and advanced-packaging competition. Analyst: Ruplu Bhattacharya