AMKR Stock Falls Below 200-DMA For First Time In Nearly A Year – B. Riley Says AI Sentiment Pressure Remains A Risk

• The firm also lowered its price target on Amkor Technology to $65 from $75 while keeping a ‘Neutral’ rating on the shares.
• On Monday, Amkor forecast third-quarter revenue between $1.95 billion and $2.05 billion, below the consensus estimate of $2.12 billion, according to Fiscal.ai.
• Morgan Stanley raised its price target on the stock to $70 from $69 and kept an ‘Equal Weight’ rating on the shares.

Amkor Technology (AMKR) shares drew investor attention on Tuesday after plunging more than 24%, breaking below their 200-day moving average for the first time since August 2025.

Source: TradingView

B. Riley cut its price target on the stock, citing near-term volatility from weakness in its communications business. AMKR shares also recorded their biggest single-day slump since March 2020.

B. Riley Says Pressure From AI Sentiment Could Create Volatility

According to The Fly, B. Riley lowered its price target on Amkor Technology to $65 from $75 while keeping a ‘Neutral’ rating on the shares. The updated price target represents a 41% upside potential from current levels.

The analyst highlighted a strong second-quarter performance, driven by improving compute demand and upside in gross margins, which supports the company’s long-term earnings outlook. However, near-term challenges, including weakness in communications, program delays, and pressure from AI sentiment, could create volatility for the stock, it added. The stock has tanked nearly 41% over the past month amid a broader AI chip selloff.

Earlier in the day, Morgan Stanley raised its price target on the stock to $70 from $69 and kept an ‘Equal Weight’ rating on the shares.

Q3 Revenue Forecast Falls Below Estimates

The firm delivered an earnings beat in the second quarter (Q2), but its third-quarter (Q3) revenue forecast was weaker than Wall Street’s expectations. For Q3, it expects revenue between $1.95 billion and $2.05 billion, below the consensus estimate of $2.12 billion.

Amkor said its communications segment is expected to see a softer-than-normal third quarter, impacted by several industry and operational headwinds. CFO Megan Faust highlighted three key factors shaping the outlook - tight memory supply, changes in customer production timelines, and the planned relocation of System-in-Package (SiP) operations to Vietnam.

“For the third quarter, we expect Communications revenue to decline in the high single digits sequentially, which is a departure from the typical seasonal patterns,” Faust said.

Retail Remains ‘Extremely Bullish’ Despite Slump

 Retail sentiment surrounding AMKR on Stocktwits trended in the ‘extremely bullish’ zone over the past 24 hours, while message volumes surged more than 1,200%.

One user said the earnings and Q3 forecast did not “deserve” the intra-day crash.

Another user highlighted why they expect margins to be lifted “significantly” in the coming quarters.

The stock has gained over 7% so far this year.

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