Amkor (AMKR) stock: a solid Q3 2026 and a bigger Nvidia deal, so why are we still passing?
In this video: what Amkor actually does in advanced packaging, what drove its Q3 2026 results and margin jump, and why we’d rather own the equipment makers behind packaging than the packager itself.
Sponsored by Fiscal.ai. See disclosure in the sponsor block below.
Amkor posted Q3 2026 revenue of $1.99B (flat YoY), gross margin up about 400 bps to 18.3%, and net income up 50% YoY to roughly $191M. Free cash flow turned negative on $548M of capex, and Nvidia expanded its commitment to $3B total with a new $1.3B for South Korea. The stock now trades around a mid-teens forward P/E, but 2027 expansion spending could weigh on profits. That’s why we prefer packaging equipment exposure, like Applied Materials, which is raising its BESI stake to 20%.
Chapters
0:00 - Amkor Q3 2026 and the AI Packaging Bottleneck
1:05 - What Amkor Does: Advanced Packaging Explained
2:35 - Why Packaging Is Now a Key Industry Bottleneck
3:20 - Nvidia’s $3B Commitment and the TSMC Partnership
4:50 - Q3 Results: Revenue, Net Income, and Free Cash Flow
6:15 - Segment Breakdown: Computing and Auto Up 37%
7:10 - Why an 18% Gross Margin Isn’t a Red Flag
8:45 - Balance Sheet Strength and Q4 2026 Guidance
10:15 - Valuation Reset: Should AMKR Trade at a Premium?
12:00 - Our Verdict: Why We Prefer Packaging Equipment
— LINKS & RESOURCES —
Join Semi Insider — $120/year
Semi Insider is Chip Stock Investor's paid research service: all research as it happens, the CSI 100 + quarterly outlook, dashboard tools (Compare Companies, Reverse DCF, supply-chain mapping), weekly live Q&A, portfolio moves before execution, and the private Discord.
Join: https://chipstockinvestor.com/features-and-pricing
Free demo: https://demo.chipstockinvestor.com/
Sponsor — Fiscal.ai
This video is sponsored by Fiscal.ai, the financial data platform we use at Chip Stock Investor. Get 15% off any paid plan: https://fiscal.ai/csi
Disclosure: That is an affiliate link — if you sign up, we may earn a commission at no extra cost to you. It helps support the channel.
All our links & socials: https://linktr.ee/chipstockinvestor
Content in this video is for general information or entertainment only and is not specific or individual investment advice. Forecasts and information presented may not develop as predicted and there is no guarantee any strategies presented will be successful. All investing involves risk, and you could lose some or all of your principal.
CSI doesn't own shares of Amkor as of publication. Positions can change without notice.