Amkor soars on Nvidia chip packaging deal
BUZZ-Amkor soars on Nvidia chip packaging deal ** Amkor Technology's AMKR.O shares jump 12.5% to $73.50 premarket on Fri after co announced multi-year, $1.5 bln agreement with Nvidia NVDA.O to expand advanced chip packaging and test capacity in the U.S.
** Partnership includes a prepayment from NVDA to support expansion of AMKR's U.S. advanced packaging operations, including capacity in Arizona, to meet growing AI demand
** Last month, AMKR entered 11-year partnership with TSMC 2330.TW, the world's largest contract chipmaker, to enhance semiconductor packaging capabilities in U.S.
** AMKR also working with Advanced Micro Devices AMD.O to package its chips
** AMKR stock recently traded at 30x expected earnings, well above its 5-year avg forward PE of 14, suggesting stock might be overvalued, per LSEG data
** Through Thurs close, stock has surged ~65%, significantly outperforming ~8% rise in the Nasdaq .IXIC
** Avg rating of 12 analysts on the stock is 'hold'; median PT $69
(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))