Shares of Amkor Technology Inc. (AMKR) rose more than 7% in morning trading on Friday after UBS upgraded the semiconductor packaging and testing company to ‘Buy’ from ‘Neutral,’ citing stronger long-term growth driven by artificial intelligence demand. The investment bank also raised its price target to $90 from $80, implying nearly 38% upside from Thursday’s closing price.

Amkor’s NVDA Tie-Up Strengthens AI Growth Outlook

UBS said Amkor’s recently expanded $1.5 billion strategic partnership with Nvidia (NVDA) supports the company’s growing role in packaging the chipmaker’s next-generation AI processors, including the Vera CPU, GB10, N1X and future products. The firm also sees an opportunity for Amkor to accelerate its business related to Advanced Micro Devices' Venice CPU as demand continues to improve, according to CNBC.

On Thursday, Amkor expanded its multiyear advanced chip packaging partnership with Nvidia through a  that includes a cash prepayment. The partnership is designed to accelerate the development of next-generation AI hardware and expand domestic chip processing capacity in the U.S.

UBS Expects Advanced Packaging Business To Expand

UBS expects Amkor to add $1.1 billion in advanced packaging revenue in 2027. The firm said the company’s advanced packaging business should benefit from rising server CPU volumes, growth in its base business, tighter capacity and price increases to offset inflationary costs.

Earlier this year, Amkor signed a 10-year agreement with Taiwan Semiconductor Manufacturing Company. It also maintains an ongoing business relationship with Advanced Micro Devices.

AMKR Stock: What Stocktwits Retail Sentiment Says

On Stocktwits, retail sentiment for AMKR improved to ‘bullish’ from ‘bearish’ in the past 24 hours, while message volume was ‘extremely high’ at the time of writing.

Over the past seven days, message volume around the stock has surged 940%, while the ticker's retail watcher base jumped 2.6% in the same period.

Amkor shares have gained nearly 62% year to date as the AI boom has fueled demand for advanced chip packaging.