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Claire Yubin Oh

Amkor rises after breaking ground on its new semiconductor packaging campus in Arizona, while increasing investment in the project to $7 billion

Amkor Technology Inc. soared in after-hours trading on Monday after announcing that it was breaking ground on its semiconductor advanced packaging and test plant in Arizona, while also increasing the investment in the facility to a total of $7 billion in collaboration with the US government.

The expanded investment will add an “additional cleanroom space and a second greenfield packaging and test facility,” creating a campus with “over 750,000 square feet of cleanroom space and as many as 3,000 high-quality jobs,” per the company’s press release. The plant will focus on “advanced packaging and testing technologies and will complement TSMC’s front-end wafer fabrication for full end-to-end semiconductor manufacturing.”

Located close to TSMC’s factories in Arizona, the proximity should reduce the need to send US-produced chips back to Asia for the final stages of production.

Amkor’s mega-plant was already set to be one of the most ambitious US-sited semiconductor packaging operations before the expansion, but the latest announcement raises the total project investment by more than $5 billion, backed by the Trump administration’s CHIPS for America Program.

According to the company, the “construction of the first manufacturing facility on the campus is expected to be completed in mid-2027, with production beginning in early 2028.”

Amkor’s mega-plant has already locked in Apple and Nvidia as customers, with Apple’s chief operating officer, Sabih Khan, saying:

“Factories across the United States are producing 19 billion chips for Apple this year alone, and Amkor’s new facility will package and test the Apple silicon produced at TSMC Arizona just down the road. We’re proud to invest in Amkor through Apple’s American Manufacturing Program, which is a key part of our $600 billion commitment to create jobs and accelerate innovation right here in the U.S.”

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Toby Bochan, Luke Kawa
6h
Markets end the week in the red as Broadcom and Oracle concerns drag the entire AI trade down

The S&P 500, Nasdaq 100, and Russell 2000 were all negative on Friday.

The lunchbox
markets
Matt Phillips

Data center trade deep in the red

The data center trade is seeing its steepest sell-off since the market rout that was ignited by President Donald Trump’s Rose Garden tariff announcement back in April.

Goldman Sachs’ themed basket of AI data center shares was down more than 6% at around 12 p.m. ET, putting it on track for its worst day since the tariff announcement.

Losses hammered seemingly every form of input needed for the sprawling concrete server warehouses at the heart of the investment boom.

Hardware makers including data storage companies like Sandisk, Western Digital, and Seagate Technology Holdings, as well as DRAM maker Micron — some of the best-performing stocks in the S&P 500 this year — were taking a licking, as were networking stocks Cisco and Arista Networks and data center builders such as Vertiv Holdings and electrical and mechanical contractor Emcor.

Optimism for all things AI has seemed to evaporate throughout the week, as the stock market greeted lackluster quarterly numbers from Oracle and Broadcom with jittery sell-offs and concern about growing debts that could crater cash flows.

Those worries seem to be spreading to ancillary beneficiaries of the AI boom on Friday, gouging a chunk out of charts that retail dip buyers have not — at least so far — stepped in to buy as we head into the weekend.

markets
Luke Kawa

Oracle denies Bloomberg report that it’s delaying some data centers for OpenAI to 2028 from 2027

Getting a multi-hundred-billion-dollar backlog for cloud computing revenues from data center projects is easy. Building them is hard.

Oracle extended declines to as much as -6.5% on the day on the heels of a Bloomberg report that the cloud giant has pushed back the completion dates for some of the data centers it’s building for OpenAI to 2028 from 2027, citing people familiar with the work. Oracle denied this report, telling Reuters that there have been no delays to any sites required to meet its contractual commitments and that all milestones remain on track.

Shares had fully pared their report-induced drop ahead of Oracle’s reply, but remain in the red for the day.

Bloomberg said the reported postponement was attributed to labor and material shortages.

Oracle has been spending more on capex than Wall Street had anticipated, leading to higher-than-expected cash burn. Management boosted its full-year capital spending plans by $15 billion after reporting Q2 results earlier this week.

Oracle’s cloud infrastructure sales came in short of estimates in its fiscal 2026 Q2, a signal that markets already had reason to doubt its ability to quickly turn its humungous RPO (that is, remaining purchase obligations) into revenues.

Traders also seem to be of the mind that potential delays to data center completions are going to limit sales for what goes into them.

Some of the bigger losers since the Bloomberg headline hit the wires include:

markets
Luke Kawa

Broadcom’s post-earnings tumble is weighing on Google’s entire AI ecosystem

Broadcom’s post-earnings plunge is prompting a sharp pullback in Google-linked AI stocks, which had been on fire thanks to the warm reception to Gemini 3.

The stocks getting hit hard:

A basket of these Google-linked AI stocks compiled by Morgan Stanley is suffering one of its worst losses of the year. This brisk retreat also follows the release of GPT-5.2 by OpenAI.

markets
Matt Phillips

Citi initiates coverage of Planet Labs with “buy” rating

Planet Labs was up after aerospace and defense analysts at Citi initiated coverage with a “buy/high risk” rating and $19 price target.

The stock is up more than 40% this week, after a strong earnings result that spotlighted the company’s growing opportunity in linking its core business of capturing daily images of the planet with AI technologies.

Citi analysts noted the potential for a positive flywheel effect for Planet Labs as it deepens its focus on integrating AI into its offerings:

“AI is accelerating the conversion of pixels to decisions, where Planet’s daily scan and deep archive offer a uniquely large training corpus and broad-area foundation for automation. AI-enabled solutions (MDA/GMS/AMS) are gaining traction with customers such as NATO and the U.S. DoW, validating the approach of integrating AI into broad-area monitoring products... These AI moves create a compounding advantage: more coverage generates more training data, which improves models, which in turn increases product utility and addressable demand.”

The stock has also caught the attention of some of the retail trading crowd, with call options activity spiking on Thursday as traders rode the market reaction to the results.

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