What Is Driving The Fall In Amkor Stock?
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Amkor Technology (AMKR) stock fell 57% between May 10 and November 6, 2026. Over the same dates, the S&P 500 was little changed, rising 0.246%. The chip packaging company experienced its sharpest one-day drop on July 28, the day after it paired second-quarter results with a flat sales outlook. So how far did Amkor’s sales growth slow in its latest quarter?
Amkor’s Sales Growth Stopped In Its Latest Quarter
Amkor reported third-quarter revenue of $1.99 billion, up just 0.18% from a year earlier. In the second quarter, sales had grown 25.6%. The July 28 drop came even though those second-quarter results had beaten estimates. Lam Research, which is on Amkor’s Trefis peer list, also declined from May 10 to November 6. It fell 32%, but not as far as Amkor.
Where Amkor’s Sales Are Shrinking And Growing
The slowdown is not across the board. Computing revenue rose 25% from the second quarter to a record. Management said data center work is making up for soft PC demand. Communications revenue fell 8% from the second quarter. Management put the decline down to moving one product line to Vietnam, memory supply constraints and component shortages for premium smartphones. Management expects Communications revenue to fall by a high-single-digit percentage again in the fourth quarter.
Taken together, the outlook is for a flat to slightly lower quarter. Management guided fourth-quarter revenue to between $1.9 billion and $2 billion. That compares with $1.99 billion in the third quarter.
Amkor shares traded at 2.9 times sales at the end of June. That marked the highest multiple of 40 quarter-ends going back to late 2016. By the November 6 close, the multiple was 1.1. The price now appears to assume that slower growth lasts.
From 2.9 to 1.1 times sales since June: moods swing fast. Be ready for a crash and a rally.
What The Fall Has Not Changed At Amkor
Amkor keeps more of each sales dollar than it did a year ago. Third-quarter gross margin was 18.3%, up from 14.3% in the same quarter a year earlier. Management said the gain came mainly from a richer mix of advanced packaging work. Operating margin rose to 11.3% from 8.0%. Based on earnings, the shares trade at 13.1 times the last twelve months, against 21.8 for the S&P 500.
Amkor is expected to report fourth-quarter results in February 2027. Management also plans to give its capital spending plan for 2027 at that time. Gross margin is the figure to watch in that report.
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