Amkor Shares Slide Despite Record Q2 Results as Investors Focus on Communications Headwinds

Amkor Technology reported record second-quarter 2026 revenue of $1.9 billion, up 26% year over year and 13% sequentially, while diluted EPS of $0.70 beat analysts' expectations of $0.47. Gross margin expanded to 16.8% from improved factory utilization and a stronger product mix. Despite the strong results, the stock fell 6.54% during regular trading and slipped another 6.72% after hours as investors focused on a weaker outlook for its communications business and operational disruptions from manufacturing transfers.

The company guided third-quarter revenue to $1.95 billion-$2.05 billion and projected diluted EPS of $0.72-$0.82, with gross margin expected to improve to 18.5%-19.5%. Growth is expected to be driven by AI-related computing demand and advanced packaging, while communications revenue is forecast to decline due to memory supply constraints and the ongoing migration of system-in-package production from Korea to Vietnam.

Amkor said demand for advanced packaging remained strong, supported by expanding AI data center deployments. Computing and automotive/industrial both reached record quarterly revenue, and the company highlighted its long-term partnerships with TSMC and NVIDIA as well as continued investment in advanced packaging capacity. Management maintained its 2026 capital expenditure guidance of $2.5 billion to $3.0 billion, positioning the company to benefit from growing demand for advanced semiconductor packaging.

While management remains optimistic about long-term AI-driven growth, investors appeared concerned about near-term execution risks, including weakness in the communications segment, manufacturing transition costs and the impact of heavy capital spending on future profitability.