Amkor Technology stock climbed more than 10% in extended trading after the semiconductor packaging company announced a $1.5 billion multi-year agreement with Nvidia. The deal covers advanced semiconductor packaging and testing for artificial intelligence and accelerated computing platforms.

Shares reached $73.30 in after-hours trading, up from a regular-session close of $65.33. By 11:36 a.m. GMT-4 on Friday, the stock had settled around $65.67.

Nvidia Backs Amkor's US Expansion

Nvidia will provide a $1.5 billion prepayment to support Amkor's expansion of advanced packaging capacity in the United States. The funding will back new packaging and test operations at Amkor's Arizona campus, addressing growing demand for AI computing hardware.

The agreement centers on high-density interconnects and next-generation heterogeneous integration — processes that combine multiple chip components within a single package to improve performance and efficiency for data center processors, networking products, and accelerated computing systems. These advanced packaging techniques have become a critical part of the AI hardware supply chain, as leading AI processors increasingly rely on multi-die designs that require sophisticated integration to deliver the bandwidth and energy efficiency demanded by large-scale model training and inference.

Amkor plans to offer full turnkey services through the expanded Arizona site, covering packaging, testing, and related production work. Nvidia's capacity commitment provides Amkor with funding for the buildout while reserving access to future output under the multi-year arrangement.

Partnership Extends Existing Supply Ties

Amkor already supplies advanced packaging solutions for Nvidia across a broad product range. The new arrangement deepens that relationship through coordinated technology development, long-term capacity planning, and additional US-based production.

Nvidia Executive Vice President Debora Shoquist said Amkor's global operations and planned domestic investment will help build more resilient AI supply chains.

Amkor Chief Executive Kevin Engel said: "Our agreement with NVIDIA accelerates our long-term roadmap and supports our ability to deliver full turnkey advanced packaging and test solutions, leveraging our global footprint while expanding U.S. capabilities to support critical AI infrastructure."

The Arizona project will add domestic production to Amkor's established manufacturing network across Asia, giving customers access to a more geographically diverse supply chain and placing advanced packaging capacity closer to US semiconductor and computing operations. The expansion aligns with a broader US push to strengthen domestic semiconductor capabilities, encouraged by federal incentives under the CHIPS and Science Act aimed at reducing reliance on East Asian manufacturing hubs.

The Nvidia agreement follows Amkor's 10-year arrangement with Taiwan Semiconductor Manufacturing Co., announced in June 2026. That contract also focuses on advanced packaging services in Arizona, adding another major customer relationship tied to the same expansion program.

Stock Gives Back Early Gains

Amkor opened at $71.10 and rallied over 16% to an intraday high of $78 before falling to $63.05. Shares later returned to $65.67, slightly above the previous close, as the initial after-hours rally narrowed during the regular session.

The company carried a market capitalization of approximately $16.27 billion at the time of writing. Amkor traded below its 52-week high of $96.66 but well above its 52-week low of $20.87.

Amkor plans to report second-quarter 2026 financial results after the market close on Monday, July 27. Investors will examine revenue, margins, capital spending, and guidance for the Arizona expansion following the Nvidia announcement.

Amkor Technologies exceeded forecasts for revenue and earnings per share in the first quarter, according to reports.

Source: Coinpaper