Ase Technology Holding (ASX)
NYSE:ASX
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ASE Technology Holding Co
(NYSE:ASX)
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Rating:68Neutral
Price Target:
$34.00
▲(136.11% Upside)
Action:ReiteratedDate:05/01/26
The score is led by improving fundamentals but constrained by negative free cash flow and heavy investment needs. Technically, the trend is strong with positive momentum, though overbought readings add near-term risk. Valuation is moderate-to-stretched (P/E 26.78) with a modest yield, while earnings-call commentary is broadly positive on LEAP/ATM growth but tempered by near-term guidance softness and elevated CapEx/debt.
Positive Factors
Rapid LEAP (leading-edge assembly & testing) expansion
ASE's LEAP business is scaling rapidly, driven by advanced packaging/testing demand. Doubling/tripling LEAP revenue materially expands higher‑margin capabilities and deepens technical differentiation, positioning the company to capture durable AI, compute and auto back‑end spend over multiple years.
Negative Factors
Negative free cash flow and weak cash conversion
Despite solid operating cash, FCF is negative due to heavy investments and working capital swings. Persistent negative FCF magnifies funding risk if growth or margins slow, pressures discretionary spending, and raises reliance on external financing to sustain long‑term capacity expansion plans.
Read all positive and negative factors
Positive Factors
Negative Factors
Rapid LEAP (leading-edge assembly & testing) expansion
ASE's LEAP business is scaling rapidly, driven by advanced packaging/testing demand. Doubling/tripling LEAP revenue materially expands higher‑margin capabilities and deepens technical differentiation, positioning the company to capture durable AI, compute and auto back‑end spend over multiple years.
Read all positive factors
ASE Technology Holding Co (ASX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$66.49B
Dividend Yield2.29%
Average Volume (3M)6.41M
Price to Earnings (P/E)26.8
Beta (1Y)1.57
Revenue Growth15.55%
EPS Growth43.35%
CountryUS
Employees96,436
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.20
Shares Outstanding2,230,416,500
10 Day Avg. Volume6,534,451
30 Day Avg. Volume6,412,086
Financial Highlights & Ratios
PEG Ratio1.09
Price to Book (P/B)3.16
Price to Sales (P/S)1.69
P/FCF Ratio-54.72
Enterprise Value/Market Cap34.77
Enterprise Value/Revenue3.47
Enterprise Value/Gross Profit18.94
Enterprise Value/Ebitda17.74
Forecast
1Y Price Target
$43.00Price Target Upside198.61% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1
Revenue Forecast (FY)$24.56B
ASE Technology Holding Co Business Overview & Revenue Model
Company Description
ASE Technology Holding Co., Ltd. provides a range of semiconductors packaging and testing, and electronic manufacturing services in the United States, Taiwan, rest of Asia, Europe, and internationally. It offers packaging services, including flip ...
How the Company Makes Money
ASE Technology Holding primarily generates revenue by providing contracted manufacturing services to semiconductor and electronics customers.
1) Semiconductor assembly, packaging, and test services (OSAT): The company earns fees for assembling se...
ASE Technology Holding Co Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call highlights strong momentum in ASE's ATM and LEAP businesses — record ATM revenue, rapid LEAP expansion (targeting USD 3.2B in 2026), improved margins, higher utilization and solid top-line and net income growth (+25% net income YoY). Management is investing aggressively (CapEx and R&D) to capture multiyear AI-driven demand and strengthen long-term competitive positioning. Offsetting risks include continued EMS softness, rising operating expenses, heavy near-term CapEx and higher debt/interest costs, FX headwinds, and a cautious Q1 2026 guide (revenue and margin decline). Overall, positive operational and structural progress outweigh near-term and financial execution risks, but execution on capacity build and EMS turnaround will be important to sustain the trajectory.Positive Updates
LEAP (Leading-Edge Assembly & Testing) Rapid Expansion
LEAP revenue grew from USD 0.6B in 2024 to USD 1.6B in 2025 (up ~167% YoY as a base comparison). Management expects LEAP to at least double to ~USD 3.2B in 2026 (75% packaging / 25% testing). Full-process LEAP is expected to triple in 2026 to ~10% of LEAP revenue, with wafer-sort and final-test contributions ramping later in the year.
Negative Updates
EMS Business Softness and Underperformance
EMS revenues declined 5% for the full year 2025 and were down 8% YoY in Q4 (Q4 revenue flat sequentially at NTD 69B). EMS gross margins were low (~9.0% in Q4; full-year 9.1%) and operating margins were thin (Q4 operating margin 2.8%, full-year 2.9%). Q4 EMS operating profit declined to NTD 2.0B (down NTD 0.5B QoQ), highlighting ongoing weakness and slower recovery versus ATM.
Read all updates
Q4-2025 Updates
Positive
Negative
LEAP (Leading-Edge Assembly & Testing) Rapid Expansion
LEAP revenue grew from USD 0.6B in 2024 to USD 1.6B in 2025 (up ~167% YoY as a base comparison). Management expects LEAP to at least double to ~USD 3.2B in 2026 (75% packaging / 25% testing). Full-process LEAP is expected to triple in 2026 to ~10% of LEAP revenue, with wafer-sort and final-test contributions ramping later in the year.
Read all positive updates
Company Guidance
Management guided Q1 2026 consolidated revenue to decline only 5–7% QoQ (NTD basis, FX assumption USD1 = NTD31.4 vs NTD30.9 last quarter), with consolidated gross margin down 50–100 bps QoQ and consolidated operating margin down 100–150 bps QoQ; ATM Q1 revenue is expected to fall low‑ to mid‑single‑digits QoQ with ATM gross margin guided to 24–25%, while EMS Q1 revenue and operating margin should be similar to Q1 2025. For full‑year 2026, management expects ATM leading‑edge (LEAP) revenue to at least double from USD1.6B to ~USD3.2B (roughly 75% packaging / 25% testing), full‑process LEAP to triple to ~10% of LEAP revenue, wafer‑sort/final test contributions to grow (final test ~10% of test), and overall ATM revenue to outgrow the logic market; they expect ATM gross margins to stay within the structural range and improve every quarter (H2 reaching the upper end), ATM operating‑expense ratio to decline ~100 bps and consolidated Opex% to fall ~80 bps. CapEx will be aggressive: add ~USD1.5B of machinery on top of 2025’s USD3.4B (totaling ~USD4.9B), with about two‑thirds for LEAP, and buildings/facilities investment at a level similar to 2025’s USD2.1B; management also expects an effective tax rate of about 18% for 2026.ASE Technology Holding Co Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
74
Positive
Cash Flow
48
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 666.14B | 648.92B | 607.72B | 574.18B | 679.14B | 564.46B |
| Gross Profit | 122.03B | 114.82B | 93.49B | 85.73B | 132.56B | 104.89B |
| EBITDA | 130.31B | 118.84B | 108.53B | 103.37B | 140.56B | 134.64B |
| Net Income | 47.13B | 40.88B | 33.15B | 31.30B | 62.86B | 63.29B |
Balance Sheet | ||||||
| Total Assets | 957.32B | 889.33B | 741.06B | 667.39B | 707.59B | 673.27B |
| Cash, Cash Equivalents and Short-Term Investments | 113.93B | 101.70B | 85.87B | 71.97B | 65.60B | 79.15B |
| Total Debt | 256.90B | 264.10B | 201.41B | 179.22B | 190.07B | 215.68B |
| Total Liabilities | 576.26B | 515.97B | 398.79B | 352.64B | 394.31B | 405.09B |
| Stockholders Equity | 350.54B | 346.90B | 320.03B | 294.48B | 294.67B | 253.63B |
Cash Flow | ||||||
| Free Cash Flow | -6.17B | -20.01B | 2.97B | 51.09B | 30.98B | 7.62B |
| Operating Cash Flow | 152.01B | 143.03B | 84.74B | 104.56B | 105.21B | 78.79B |
| Investing Cash Flow | -161.93B | -166.55B | -86.53B | -54.87B | -75.98B | -54.95B |
| Financing Cash Flow | 22.71B | 45.52B | -6.53B | -47.97B | -62.11B | 524.22M |
ASE Technology Holding Co Technical Analysis
Positive
14.40
Price Trends
23.02
Positive
19.96
Positive
15.76
Positive
Market Momentum
1.52
Negative
79.70
Negative
95.50
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASX, the sentiment is Positive. The current price of 14.4 is below the 20-day moving average (MA) of 23.61, below the 50-day MA of 23.02, and below the 200-day MA of 15.76, indicating a bullish trend. The MACD of 1.52 indicates Negative momentum. The RSI at 79.70 is Negative, neither overbought nor oversold. The STOCH value of 95.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ASX.
ASE Technology Holding Co Risk Analysis
ASE Technology Holding Co disclosed 51 risk factors in its most recent earnings report. ASE Technology Holding Co reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
Failure to grasp the future development of AI could adversely affect our business, financial condition, and results of operations. Q4, 2023
ASE Technology Holding Co Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $30.82B | 14.74 | 11.36% | 6.06% | 7.52% | 17.79% | |
70 Outperform | $35.94B | 21.96 | 7.68% | ― | 0.61% | ― | |
68 Neutral | $66.49B | 26.78 | 12.81% | 2.29% | 15.55% | 43.35% | |
65 Neutral | $39.65B | 183.93 | 1.53% | ― | -15.35% | -90.84% | |
65 Neutral | $48.15B | 215.94 | 0.97% | 1.28% | 0.79% | -86.68% | |
64 Neutral | $17.29B | 33.43 | 8.73% | 0.81% | 12.71% | 37.49% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
ASX
ASE Technology Holding Co
31.41
22.93
270.58%
AMKR
Amkor
69.75
52.48
303.76%
ON
ON Semiconductor
100.81
61.21
154.57%
STM
STMicroelectronics
55.14
32.64
145.08%
UMC
United Micro
13.06
6.37
95.13%
GFS
GlobalFoundries Inc
64.60
29.42
83.63%
ASE Technology Holding Co Corporate Events
ASE Technology Holding Posts Strong 1Q26 Earnings Growth Driven by ATM Segment
Apr 29, 2026
On April 29, 2026, ASE Technology Holding reported unaudited consolidated net revenues of NT$173.66 billion for the first quarter of 2026, up 17.2% year-on-year but down 2.4% from the prior quarter. Net income attributable to shareholders more tha...
ASE Technology Holding Delivers Strong Q1 2026 Profit Growth on Robust ATM Business
Apr 29, 2026
In the first quarter of 2026, ASE Technology Holding posted consolidated net revenue of NT$173.66 billion, down 2% quarter on quarter but up 17% year on year, with gross margin improving to 20.1% and operating margin to 10.1%. Net income attributa...
ASE Technology Holding Posts Strong March and Q1 2026 Revenue Growth in Core ATM Business
Apr 10, 2026
On April 10, 2026, ASE Technology Holding reported unaudited consolidated net revenues for March 2026 and the first quarter of 2026, showing a sharp rebound in monthly sales but a slight sequential dip for the quarter. March consolidated net reven...
ASE Technology Holding Files 2025 Form 20-F With U.S. SEC
Apr 8, 2026
ASE Technology Holding Co., Ltd. announced on April 8, 2026, that it filed its annual report on Form 20-F for the year ended December 31, 2025 with the U.S. Securities and Exchange Commission. The 2025 report is accessible through the company̵...
ASE Technology Holding Posts Strong Year-on-Year February Revenue Rebound Despite Sequential Decline
Mar 10, 2026
On March 10, 2026, ASE Technology Holding reported unaudited consolidated net revenues for February 2026 of NT$52.10 billion (US$1.65 billion), down 13.2% month on month but up 15.9% year on year, underscoring a softer start to the year in sequent...
ASE Technology Holding Posts Strong January 2026 Revenue Growth
Feb 10, 2026
On February 10, 2026, ASE Technology Holding Co., Ltd. reported unaudited consolidated net revenues for January 2026, with group sales rising to NT$59.99 billion (US$1.91 billion), up 1.9% from December 2025 and 21.3% year on year. The ATM assembl...
ASE Technology Holding Posts Strong 4Q25 and 2025 Results on Surging Semiconductor Packaging Margins
Feb 5, 2026
On February 5, 2026, ASE Technology Holding Co., Ltd. reported unaudited consolidated financial results for the fourth quarter and full year 2025, showing a solid rebound in profitability led by its core semiconductor packaging and testing busines...
ASE Technology Holding Posts Strong 2025 Growth and Projects Further AI-Driven Expansion in 2026
Feb 5, 2026
On February 5, 2026, ASE Technology Holding reported unaudited results for the fourth quarter and full year 2025, highlighting strong growth driven by advanced packaging and testing services. Consolidated 2025 revenue rose 8% year-on-year to NT$64...
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.