Amkor shares dive after Q2 beat as chip rout deepens
BUZZ-Amkor shares dive after Q2 beat as chip rout deepens ** Semiconductor packaging provider Amkor Technology's AMKR.O shares dive 23.8% to $46.24 on Tues despite Q2 results that topped Wall Street's expectations as chip names globally continue to sell off
** AMKR on course for steepest daily pct decline since pandemic onset in Mar 2020; this as Philadelphia SE Semiconductor index .SOX drops >6% as concerns about hefty corporate outlays and rising Chinese competition bite AI chip stocks
** Amkor late Mon said Q2 rev grew 26% yr/yr to $1.9 bln and posted adj EPS of 70 cents, both above LSEG estimates of $1.81 bln and 48 cents/sh, respectively
** CEO Kevin Engel cited record rev in co's Computing and Automotive and Industrial end markets
** Reacting to the report, Morgan Stanley raised its PT to $70 from $69, while B. Riley reduced its PT to $65 from $75
** Avg rating of 12 analysts covering AMKR stock is 'hold'; median PT $70
** The stock had gained ~54% YTD ahead of results
** On Thurs, Amkor struck a multi-yr, $1.5 bln deal with Nvidia NVDA.O to expand advanced chip packaging and test capacity in the U.S., after entering 11-year partnership with TSMC 2330.TW last month
(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))