7. Amkor Technology Inc. (NASDAQ:AMKR)
Amkor Technology, Inc. (NASDAQ: AMKR) reaches seventh place as an indirect but important AI semiconductor investment. It does not design famous graphics processors or operate a generative AI chatbot. Instead, it provides semiconductor packaging and testing services that help transform advanced chips into usable products.
Modern AI processors contain increasingly complicated architectures, massive computing requirements and high-bandwidth connections. As chip designs become more advanced, packaging is no longer a minor final step in manufacturing. It has become a critical part of performance, power efficiency and system reliability.
That development creates an opportunity for semiconductor packaging companies. The rapid construction of AI data centers is generating demand not only for processors but also for memory, networking equipment, power systems and advanced packaging capacity. This gives the company exposure to the broader AI infrastructure boom without requiring it to compete directly against the largest chip designers.
Second-quarter 2026 net sales climbed 26% to a record $1.90 billion. Operating income increased to $200 million from $92 million in the comparable period, while net income reached $174 million. Management specifically highlighted progress in AI and high-performance computing programs and continued investment in advanced packaging capacity.
At approximately $47.77 per share and about 21.5 times trailing earnings, the valuation remains more reasonable than those of several popular AI chip stocks. The company also reported $2.5 billion in cash and short-term investments, although it carried an equivalent amount of debt.
The biggest risk is cyclicality. Semiconductor demand can move sharply in both directions, while new factories require substantial capital spending. Nevertheless, the company’s position inside the AI hardware supply chain makes it a practical picks-and-shovels investment for those seeking cheaper alternatives to the most expensive semiconductor names.
