EMAG Technology's second-quarter results hit a record but still plunged more than 24%
Amkor Technology, a provider of semiconductor packaging and testing services, announced record second-quarter financial results after the market closed on Monday. Both revenue and earnings significantly exceeded market expectations, but the company's stock price still plummeted by more than 24% in Tuesday trading. The financial report shows that Amkor’s net sales in the second quarter reached US$1.9 billion, a year-on-year increase of 26%, a record high. Net profit was US$174 million, or US$0.70 per share, far exceeding market expectations of US$0.48. Gross profit margin increased significantly from 14.2% in the previous quarter to 16.8%, mainly due to increased factory capacity utilization and a better product mix. The company's CEO said that the computing business and the automotive and industrial end markets both set quarterly revenue records. However, the market responded to the stellar earnings report with a sell-off. Analysis pointed out that the direct cause of the stock price plunge was that the company's third-quarter performance guidance was lower than expected. Amkor expects third-quarter revenue of about $2 billion (guided range of $1.95 billion to $2.05 billion), below Wall Street analysts' consensus estimate of about $2.1 billion. In addition, the company expects communications business revenue to experience a high-single-digit sequential decline in the third quarter, deviating from normal seasonal patterns. This is mainly affected by factors such as the decline in Android-related revenue caused by high-bandwidth memory supply bottlenecks, changes in customer production plans, and phased disturbances caused by the company's migration of system-level packaging business to Vietnam factories. Although the short-term guidance disappointed the market, many analysts pointed out that Amkor's long-term growth logic has not changed. In the first half of this year, the company signed a multi-year strategic partnership with Nvidia and received an advance payment of US$1.5 billion to support the expansion of its advanced packaging production capacity in the United States; at the same time, it has signed a multi-year strategic partnership with NVIDIA A 10-year cooperation agreement was reached. These collaborations solidify its key position in the AI infrastructure supply chain. The company still maintains a capital expenditure plan of US$2.5 billion to US$3 billion in 2026 for the expansion of advanced packaging capacity, including the Arizona campus.