Ase Technology Holding (ASX)
NYSE:ASX
Top Page
ASE Technology Holding Co
(NYSE:ASX)
Select Model
Select Model
Rating:63Neutral
Price Target:
$26.00
▲(80.56% Upside)
Action:ReiteratedDate:02/07/26
The score is primarily driven by improving fundamentals and a positive earnings narrative around ATM/LEAP growth, supported by strong technical uptrend signals. Offsetting this are weak cash conversion (negative 2025 free cash flow) and a relatively expensive valuation (high P/E with modest yield).
Positive Factors
LEAP (leading-edge packaging/testing) rapid expansion
A multiyear ramp in LEAP positions ASE to capture structural AI and advanced-semiconductor demand. Doubling LEAP revenue implies durable mix shift toward higher-value packaging and test services, strengthening long-term revenue quality and competitive differentiation versus legacy EMS peers.
Negative Factors
Negative free cash flow in 2025
A sharp swing to negative free cash flow reduces financial flexibility and raises funding needs during an aggressive CapEx cycle. If FCF fails to recover, ASE may need to rely more on debt or equity issuance, increasing dilution or interest burdens and constraining returns over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
LEAP (leading-edge packaging/testing) rapid expansion
A multiyear ramp in LEAP positions ASE to capture structural AI and advanced-semiconductor demand. Doubling LEAP revenue implies durable mix shift toward higher-value packaging and test services, strengthening long-term revenue quality and competitive differentiation versus legacy EMS peers.
Read all positive factors
ASE Technology Holding Co (ASX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$54.16B
Dividend Yield2.29%
Average Volume (3M)6.75M
Price to Earnings (P/E)26.8
Beta (1Y)1.51
Revenue Growth8.01%
EPS Growth10.41%
CountryUS
Employees96,436
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.20
Shares Outstanding2,223,515,000
10 Day Avg. Volume6,010,785
30 Day Avg. Volume6,747,836
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 Cap34.91
Enterprise Value/Revenue2.95
Enterprise Value/Gross Profit17.12
Enterprise Value/Ebitda15.58
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.92
Revenue Forecast (FY)$23.75B
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:Apr 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
66
Positive
Cash Flow
42
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 648.92B | 607.72B | 574.18B | 679.14B | 564.46B |
| Gross Profit | 114.82B | 93.49B | 85.73B | 132.56B | 104.89B |
| EBITDA | 118.84B | 108.53B | 103.37B | 140.56B | 134.64B |
| Net Income | 40.88B | 33.15B | 31.30B | 62.86B | 63.29B |
Balance Sheet | |||||
| Total Assets | 889.33B | 741.06B | 667.39B | 707.59B | 673.27B |
| Cash, Cash Equivalents and Short-Term Investments | 101.70B | 85.87B | 71.97B | 65.60B | 79.15B |
| Total Debt | 264.10B | 201.41B | 179.22B | 190.07B | 215.68B |
| Total Liabilities | 515.97B | 398.79B | 352.64B | 394.31B | 405.09B |
| Stockholders Equity | 346.90B | 320.03B | 294.48B | 294.67B | 253.63B |
Cash Flow | |||||
| Free Cash Flow | -20.01B | 2.97B | 51.09B | 30.98B | 7.62B |
| Operating Cash Flow | 143.03B | 84.74B | 104.56B | 105.21B | 78.79B |
| Investing Cash Flow | -166.55B | -86.53B | -54.87B | -75.98B | -54.95B |
| Financing Cash Flow | 45.52B | -6.53B | -47.97B | -62.11B | 524.22M |
ASE Technology Holding Co Technical Analysis
Positive
14.40
Price Trends
22.12
Positive
19.20
Positive
15.26
Positive
Market Momentum
0.40
Negative
65.84
Neutral
87.89
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 22.00, below the 50-day MA of 22.12, and below the 200-day MA of 15.26, indicating a bullish trend. The MACD of 0.40 indicates Negative momentum. The RSI at 65.84 is Neutral, neither overbought nor oversold. The STOCH value of 87.89 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 | $24.57B | 14.74 | 11.36% | 6.06% | 5.87% | -20.93% | |
69 Neutral | $27.23B | 21.96 | 7.68% | ― | 0.25% | -106.22% | |
68 Neutral | $13.64B | 26.10 | 8.73% | 0.81% | 0.13% | -16.17% | |
64 Neutral | $27.05B | 183.93 | 1.53% | ― | -16.13% | -81.06% | |
63 Neutral | $54.16B | 26.78 | 12.81% | 2.29% | 8.01% | 10.41% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $34.27B | 136.11 | 0.97% | 1.28% | -17.33% | -76.71% |
* Technology Sector Average
ASX
ASE Technology Holding Co
24.84
16.75
207.20%
AMKR
Amkor
57.96
41.61
254.58%
ON
ON Semiconductor
68.65
33.57
95.70%
STM
STMicroelectronics
39.48
19.25
95.13%
UMC
United Micro
9.74
3.18
48.48%
GFS
GlobalFoundries Inc
48.93
15.60
46.80%
ASE Technology Holding Co Corporate Events
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.