Why is Amkor Technology stock crashing today?

Shares of Amkor Technology fell 22.9% in morning trading today after the semiconductor packaging and test services company issued third-quarter revenue guidance that missed analyst expectations by a wide margin, more than offsetting a record second-quarter performance.

The company guided Q3 2026 revenue to a range of $1.95 billion to $2.05 billion, well below the Street consensus of approximately $2.12 billion, sending the stock sharply lower from its prior close of $60.71.

The Q3 shortfall was driven by two specific headwinds: a projected decline in communications revenue tied to the ongoing migration of system-in-package manufacturing from South Korea to Vietnam, which management said would weigh on results through the fourth quarter and into early 2027, and continued softness in memory-related demand.

On the analyst front, B. Riley responded to the earnings report by cutting its price target on AMKR to $65 from $75, while maintaining a Neutral rating. Insider selling activity — with 20 open-market sales and zero purchases recorded over the prior six months — added a further layer of negative sentiment.

The broader market offered little support, with the NASDAQ Composite slipping 0.7% today, providing a modestly unfavorable backdrop for semiconductor names. The S&P 500 was essentially flat and the Dow Jones edged up 0.7%, underscoring that today’s move in AMKR was driven almost entirely by company-specific factors rather than macro forces.

Taken together, the combination of a guidance miss on the top line, a communications segment under structural pressure from a manufacturing transition, a post-earnings analyst price target cut, and a pattern of sustained insider selling proved too much for a stock that had already pulled back from its 52-week high of $96.68. Despite Q2 earnings that beat on both revenue and EPS, the forward outlook reset investor expectations significantly lower.