Asustek Computer Inc. Sponsored GDR RegS (ASUUY) AI Stock Analysis

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Asustek Computer Inc. Sponsored GDR RegS

(OTC:ASUUY)

Rating:75Outperform

Price Target:

$118.00

▲(12.92% Upside)

Asustek Computer Inc. scores well due to strong financial performance and attractive valuation, supported by robust revenue growth and profitability. The earnings call further reinforces optimism for future growth despite current challenges. However, technical indicators suggest a bearish trend, which tempers the overall score.

Asustek Computer Inc. Sponsored GDR RegS (ASUUY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$15.51B

Dividend Yield6.37%

Average Volume (3M)6.00

Price to Earnings (P/E)13.5

Beta (1Y)0.56

Revenue Growth25.11%

EPS Growth13.12%

CountryUS

EmployeesN/A

SectorTechnology

Sector Strength85

IndustryComputer Hardware

Share Statistics

EPS (TTM)2.20

Shares Outstanding148,552,000

10 Day Avg. Volume19

30 Day Avg. Volume6

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap0.94

Enterprise Value/Revenue0.02

Enterprise Value/Gross Profit0.14

Enterprise Value/Ebitda0.28

Forecast

1Y Price Target

$118.00

Price Target Upside12.92% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

Asustek Computer Inc. Sponsored GDR RegS Business Overview & Revenue Model

Company DescriptionASUSTeK Computer Inc. researches and develops, designs, manufactures, sells, and repairs computers, communications, and consumer electronic products in Taiwan, China, Singapore, Europe, the United States, and internationally. The company offers Internet information services; maintenance and operating services for information hardware; services information technology and communication products; and leases real estate property. It provides ink-jet print heads and digital image output technology, high-speed analog circuits, integrated circuits, industrial and medical computers, interface cards, and medical robots; invests in computer peripheral, Internet service, and automotive electronics businesses; and researches, develops, sells, and consults information system software; provides marketing support and repair services for medical computers and peripherals. ASUSTeK Computer Inc. was founded in 1989 and is headquartered in Taipei, Taiwan.

How the Company Makes MoneyASUS generates revenue primarily through the sale of its computer hardware and electronic products. The company has a strong presence in the consumer electronics market, with laptops and desktops being significant contributors to its income. Additionally, ASUS capitalizes on its reputation as a leading manufacturer of motherboards and graphics cards, which are in high demand among PC enthusiasts and gamers. The company also diversifies its revenue streams by offering peripherals and accessories, including monitors and networking equipment. Strategic partnerships with technology firms and distributors enhance its market reach and contribute to sustained earnings. ASUS's commitment to research and development enables it to innovate and maintain a competitive edge, further solidifying its financial performance.

Asustek Computer Inc. Sponsored GDR RegS Earnings Call Summary

Earnings Call Date:Aug 13, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Nov 06, 2025

Earnings Call Sentiment Positive

The earnings call highlighted ASUS's strong revenue growth driven by gaming and AI products, alongside successful innovations and expansions in product offerings. However, challenges from tariffs and exchange rate fluctuations affected profitability and margins. Despite these challenges, ASUS remains optimistic about future growth and resilience.

Q2-2025 Updates

Positive Updates

Record-Breaking Revenue and Growth

ASUS achieved a record-high quarterly revenue of TWD 174 billion, marking a 29% quarter-on-quarter and 28% year-on-year increase. This growth was primarily driven by gaming products and AI-related products, both exceeding 40% year-on-year revenue growth.

Gaming Segment Success

Gaming products accounted for 48% of total revenue, growing 40% year-on-year. ASUS launched the ROG Xbox Ally line in partnership with Xbox, enhancing the handheld gaming experience.

AI Server Expansion

AI servers now make up over 15% of the server mix, with strong growth expected in the coming quarters. The launch of GB300 AI servers is anticipated to further expand ASUS' competitiveness in the server market.

Strong Non-Operating Income

ASUS reported total non-operating income of TWD 5.15 billion, including interest income of TWD 900 million, investment income of TWD 1.08 billion, FX gains of TWD 1.09 billion, and dividend income of roughly TWD 2 billion.

Innovations and Awards

ASUS won 41 Red Dot Design Awards and received several honors at Computex for product innovation across gaming and sustainability.

Negative Updates

Tariff and FX Challenges

Profitability was affected by tariffs and Taiwanese dollar exchange rate fluctuations, reducing the operating margin by approximately 0.5 to 2 percentage points.

Impact on Operating Margin

Tariff and FX impacts reduced the operating margin to 3.4%, below the target range of 4% to 5%.

AI Server Margins

AI servers, while driving revenue growth, are under margin pressure due to GPU vendor capturing the lion's share of the gross margin.

Company Guidance

In the ASUS Quarter 2 2025 Online Investor Conference, CFO Nick Wu provided detailed financial guidance, reporting a record quarterly revenue of TWD 174 billion, up 29% quarter-on-quarter and 28% year-on-year. Key growth drivers included gaming products and AI-related products, both showing over 40% revenue growth year-on-year. Gross profit was TWD 21.5 billion with a gross margin of 12.4%, while operating income was TWD 5.96 billion, leading to an operating margin of 3.4%. The quarter's profitability was impacted by tariffs and exchange rate fluctuations, which reduced the operating margin by approximately 0.5 and 1-2 percentage points, respectively. Despite these challenges, ASUS expects to maintain an operating margin target range of 4% to 5% after these issues normalize, with net income after tax reported at TWD 9.8 billion and an EPS of TWD 13.2. The company also highlighted nonoperating income totaling TWD 5.15 billion, including TWD 900 million in interest income and TWD 1.09 billion in FX gains. Looking ahead, ASUS anticipates a 5% to 10% growth in PC product revenue quarter-on-quarter and expects the tariff and FX impacts to ease significantly in the coming months.

Asustek Computer Inc. Sponsored GDR RegS Financial Statement Overview

Summary

Asustek Computer Inc. demonstrates a solid financial footing with strong revenue growth, efficient operations, and a stable balance sheet. While there is an uptick in debt, the company's ability to generate cash flow remains robust, supporting its financial health and strategic growth initiatives.

Income Statement

Very Positive

Asustek shows a strong financial performance with consistent revenue growth from 2024 to TTM (Trailing-Twelve-Months). The gross profit margin remains healthy, and the net profit margin has improved significantly, indicating efficiency in operations. EBIT and EBITDA margins are robust, reflecting solid operational management.

Balance Sheet

Very Positive

The company maintains a stable balance sheet with a favorable debt-to-equity ratio, signifying prudent financial management. The equity ratio indicates a strong capital structure, and ROE is impressive, reflecting efficient use of shareholder funds. However, there is a slight increase in total debt that warrants monitoring.

Cash Flow

Positive

Cash flow analysis reveals positive trends with a significant increase in operating cash flow in the TTM period. The free cash flow growth is noteworthy, although the operating cash flow to net income ratio suggests room for improvement in cash generation efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	656.18B	587.09B	482.31B	537.19B	535.23B	412.78B
Gross Profit	106.49B	103.47B	72.39B	72.37B	108.65B	73.21B
EBITDA	51.52B	45.82B	25.56B	15.49B	52.20B	28.34B
Net Income	36.74B	31.39B	15.93B	14.69B	44.55B	26.56B
Balance Sheet
Total Assets	568.61B	556.52B	480.08B	471.16B	504.15B	396.51B
Cash, Cash Equivalents and Short-Term Investments	101.41B	102.37B	82.30B	74.88B	73.82B	78.20B
Total Debt	23.47B	27.44B	17.97B	50.43B	11.01B	6.82B
Total Liabilities	299.88B	259.33B	221.10B	244.28B	257.72B	181.87B
Stockholders Equity	244.19B	269.54B	239.82B	212.38B	232.33B	201.76B
Cash Flow
Free Cash Flow	55.77B	5.47B	50.05B	-17.47B	30.51B	-5.11B
Operating Cash Flow	58.14B	8.03B	52.09B	-15.72B	32.69B	-2.09B
Investing Cash Flow	-9.19B	-3.19B	2.21B	-4.12B	-6.67B	-4.59B
Financing Cash Flow	-10.33B	4.81B	-45.24B	6.82B	-17.37B	-11.35B

Asustek Computer Inc. Sponsored GDR RegS Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price104.50

Price Trends

50DMA

109.56

Negative

100DMA

100.82

Positive

200DMA

96.50

Positive

Market Momentum

MACD

-1.74

Positive

RSI

41.97

Neutral

STOCH

33.67

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASUUY, the sentiment is Neutral. The current price of 104.5 is below the 20-day moving average (MA) of 108.13, below the 50-day MA of 109.56, and above the 200-day MA of 96.50, indicating a neutral trend. The MACD of -1.74 indicates Positive momentum. The RSI at 41.97 is Neutral, neither overbought nor oversold. The STOCH value of 33.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ASUUY.

Asustek Computer Inc. Sponsored GDR RegS Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTAP	78 Outperform	$21.89B	19.56	108.51%	1.90%	5.02%	22.19%
ASUUY	75 Outperform	$15.51B	13.50	13.89%	6.37%	25.11%	13.12%
WDC	74 Outperform	$27.65B	16.42	25.98%	0.13%	2.12%	―
STX	72 Outperform	$35.14B	24.23	-109.27%	1.73%	38.86%	337.22%
HPQ	69 Neutral	$25.37B	10.60	84.33%	4.23%	2.08%	-12.41%
SMCI	66 Neutral	$26.30B	26.59	17.90%	―	47.04%	-17.89%
Sector *	61 Neutral	$35.62B	8.22	-10.94%	1.88%	8.86%	-10.36%

* Technology Sector Average

Performance Comparison

ASUUY

Asustek Computer Inc. Sponsored GDR RegS

104.50

21.72

26.24%

HPQ

27.01

-6.45

-19.28%

NTAP

NetApp

112.13

-17.17

-13.28%

STX

Seagate Tech

165.24

68.69

71.14%

SMCI

Super Micro Computer

44.36

<0.01

0.02%

WDC

Western Digital

79.71

32.63

69.31%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 26, 2025