ASE Technology Holding Co (ASX) AI Stock Analysis

• Market Cap: $53.29B
• Dividend Yield: 2.29%
• Average Volume (3M): 8.15M
• Price to Earnings (P/E): 39.1
• Beta (1Y): 1.44
• Revenue Growth: 8.01%
• EPS Growth: 10.41%
• Country: US
• Employees: 96,436
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.20
• Shares Outstanding: 2,223,515,000
• 10 Day Avg. Volume: 7,644,550
• 30 Day Avg. Volume: 8,154,106
• PEG Ratio: 1.09
• Price to Book (P/B): 3.16
• Price to Sales (P/S): 1.69
• P/FCF Ratio: -54.72
• Enterprise Value/Market Cap: 34.53
• Enterprise Value/Revenue: 2.87
• Enterprise Value/Gross Profit: 16.66
• Enterprise Value/Ebitda: 15.17
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: $25.00 ▲(73.61% Upside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 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

Rapid LEAP (leading-edge) expansion

Management's clear target to double LEAP revenue within a year reflects a structural shift toward higher-value advanced packaging and testing. Scaling LEAP increases revenue mix toward premium services, deepens customer ties on complex nodes, and positions ASE to capture multi-year AI and advanced-node outsourcing demand, strengthening long-term competitive positioning if execution holds.

Strong ATM revenue and margin expansion

Sustained ATM top-line growth and materially higher ATM margins show structural improvement in the core packaging/testing franchise. Higher utilization and operating leverage in ATM drive durable profit contribution, supporting consolidated margins and cash generation potential over the medium term as demand for outsourced packaging/testing remains elevated.

Targeted, large-scale CapEx to build advanced capacity

Aggressive, technology-focused capital spending is a strategic investment to expand advanced packaging and testing capacity. This deepens manufacturing moat, accelerates capability parity vs competitors, and readies ASE to capture structural AI and logic outsourcing demand. Over 2–6 months these investments underpin sustainable revenue mix shifts toward higher-margin services.

Negative Factors

Negative free cash flow and cash conversion risk

A sharp swing to negative free cash flow reflects heavy capex and/or working-capital strain, reducing financial flexibility. Persistent negative FCF limits organic funding for growth, increases reliance on external financing, and raises execution risk for capacity builds; if sustained, it can constrain dividends, buybacks, or opportunistic investments.

Rising leverage and higher interest costs

Growing debt and rising interest expense reduce margin flexibility and increase financing risk during cyclical slowdowns. Higher leverage limits strategic optionality and makes funding large-capex plans more costly, raising the bar for execution; if demand softens, elevated debt service could pressure earnings and cash flow coverage over medium term.

Underperforming, low-margin EMS segment

The EMS business is structurally lower-margin and has shown revenue declines, which dilutes consolidated profitability. Persistent EMS softness requires either operational turnaround or capital reallocation; without improvement, EMS will constrain overall margin expansion and make ASE more dependent on ATM/LEAP execution to sustain long-term profit growth.

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 chip ball grid array (BGA) and chip scale package (CSP), advanced chip scale packages, quad flat packages, low profile and thin quad flat packages, bump chip carrier and quad flat no-lead (QFN) packages, advanced QFN packages, plastic BGAs, and 3D chip packages; stacked die solutions in various packages; and copper and silver wire bonding solutions. The company also provides advanced packages, such as flip chip BGA; heat-spreader FCBGA; flip-chip CSP; hybrid FCCSP; flip chip package in package and package on package (POP); advanced single sided substrate; high-bandwidth POP; fan-out wafer-level packaging; SESUB; and 2.5D silicon interposer. In addition, it offers IC wire bonding packages; system-in-package products (SiP) and modules; and interconnect materials, as well as assembles automotive electronic products. Further, the company provides a range of semiconductor testing services, including front-end engineering testing, wafer probing, logic/mixed-signal/RF module and SiP/MEMS/discrete final testing, and other test-related services, as well as drop shipment services. Additionally, it develops, constructs, sells, leases, and manages real estate properties; produces substrates; offers information software, equipment leasing, investment advisory, and warehousing management services; processes and sells computer and communication peripherals, electronic components, telecommunications equipment, and motherboards; and imports and exports goods and technology. The company was incorporated in 1984 and is headquartered in Kaohsiung, Taiwan.

How the Company Makes Money

ASE Technology Holding Co. generates revenue primarily through its semiconductor packaging and testing services. The company's core revenue streams include the assembly and testing of integrated circuits, advanced packaging solutions, and related services. Key factors contributing to its earnings include the high demand for semiconductor components in various industries, such as consumer electronics, automotive, and telecommunications. ASE has established significant partnerships with major semiconductor manufacturers, allowing it to secure long-term contracts and a stable customer base. Additionally, the company's focus on research and development enables it to offer cutting-edge technologies, further enhancing its market position and revenue potential.

ASE Technology Holding Co Financial Statement Overview

Summary

Operating performance improved (modest revenue growth and better gross/net margins), and the balance sheet is serviceable with moderate leverage. However, cash generation is a key weakness: 2025 free cash flow turned sharply negative and did not cover net income, increasing near-term financial flexibility risk.

Income Statement

Revenue has grown modestly in the latest year (2025: +3.3%) after a decline in 2023, showing a return to expansion but not a strong acceleration. Profitability improved versus 2024, with gross margin rising (17.6% vs 15.4%) and net margin also higher (6.3% vs 5.5%), indicating better cost control and mix. However, profitability remains well below the 2021–2022 peak levels (net margin ~9–11%), highlighting a more normalized margin environment and some cyclicality risk.

Balance Sheet

Leverage is moderate: debt-to-equity increased to 0.76 in 2025 from 0.63 in 2024, signaling a higher reliance on debt financing. Equity has grown over time, providing a reasonable buffer, and return on equity improved to 11.7% in 2025 (from 10.4% in 2024), though still far below the elevated 2021–2022 returns. Overall balance sheet looks serviceable, but the trend toward higher leverage is a key watch item.

Cash Flow

Cash generation is the weakest area. Operating cash flow improved in 2025, but free cash flow turned sharply negative (-20.0B) after being slightly positive in 2024, and free cash flow declined materially year over year. Free cash flow also did not cover net income in 2025 (negative relative to profits), suggesting heavier investment/capex or working-capital drag. While prior years show the business can generate strong free cash flow (notably 2023), the latest swing adds volatility and reduces financial flexibility near-term.

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

• Technical Analysis Sentiment: Positive
• Last Price: 14.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 21.53, below the 50-day MA of 18.80, and above the 200-day MA of 13.22, indicating a bullish trend. The MACD of 1.47 indicates Negative momentum. The RSI at 71.10 is Negative, neither overbought nor oversold. The STOCH value of 74.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ASX.

ASE Technology Holding Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UMC	77 Outperform	$27.14B	19.44	11.43%	6.06%	5.87%	-20.93%
GFS	69 Neutral	$26.46B	29.86	7.80%	―	0.25%	-106.22%
AMKR	68 Neutral	$12.00B	31.28	8.67%	0.81%	0.13%	-16.17%
ON	64 Neutral	$27.59B	209.80	1.47%	―	-16.13%	-81.06%
STM	64 Neutral	$30.28B	178.33	0.93%	1.28%	-17.33%	-76.71%
ASX	63 Neutral	$53.29B	39.06	12.53%	2.29%	8.01%	10.41%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

ASE Technology Holding Co Corporate Events

ASE Technology Holding Posts Strong January 2026 Revenue Growth

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 assembly, testing and materials segment generated NT$37.64 billion (US$1.20 billion) in January, essentially flat month on month but up sharply from a year earlier, underscoring strong recovery in demand for outsourced semiconductor services and reinforcing ASE’s position in the global chip packaging and testing supply chain.

The most recent analyst rating on (ASX) stock is a Buy with a $23.50 price target. To see the full list of analyst forecasts on ASE Technology Holding Co stock, see the ASX Stock Forecast page.

ASE Technology Holding Posts Strong 4Q25 and 2025 Results on Surging Semiconductor Packaging Margins

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 business. Fourth-quarter 2025 net revenues rose 9.6% year-on-year and 5.5% sequentially to NT$177,915 million, with net income attributable to shareholders jumping to NT$14,713 million from NT$9,312 million a year earlier, as gross margin improved to 19.5% and operating margin to 9.9%. For full-year 2025, ASEH generated net revenues of NT$645,388 million, up 8.4% from 2024, and net income of NT$40,658 million, with gross and operating margins expanding to 17.7% and 7.9%, respectively. The ATM segment drove much of the improvement, with 4Q25 net revenues up 24.2% year-on-year and gross margin rising to 26.3%, while the EMS segment saw a 7.9% year-on-year decline in fourth-quarter revenues and slight margin compression. Overall, the results highlight ASEH’s strengthening earnings power in higher-margin semiconductor services even as its EMS operations face softer demand, an important signal for investors tracking the company’s mix shift and competitive positioning in the global semiconductor value chain.

The most recent analyst rating on (ASX) stock is a Hold with a $20.50 price target. To see the full list of analyst forecasts on ASE Technology Holding Co stock, see the ASX Stock Forecast page.

ASE Technology Holding Posts Strong 2025 Growth and Projects Further AI-Driven Expansion in 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$645.4 billion, with assembly, testing and material (ATM) revenues up 20%, gross profit up 18%, and net income attributable to shareholders up 25%, while Q4 2025 quarterly net revenues increased 10% year-on-year and net income jumped 58%. In U.S. dollar terms, 2025 consolidated revenue grew 12%, supported by a 23% rise in ATM revenue, a 36% expansion in the testing business, and LEAP services surging to US$1.6 billion, alongside aggressive capital expenditures of US$3.4 billion on machinery and US$2.1 billion on buildings, facilities and automation to expand leading-edge capabilities. Management signaled confidence that revenue momentum will continue into 2026 and beyond, projecting LEAP services within the ATM segment to double to US$3.2 billion and to outpace the broader logic semiconductor market, while increasing investment in R&D, human capital, advanced capacity, and smart factory infrastructure to capture AI-driven demand and reinforce the company’s competitive position within Taiwan’s semiconductor cluster.

The most recent analyst rating on (ASX) stock is a Hold with a $20.50 price target. To see the full list of analyst forecasts on ASE Technology Holding Co stock, see the ASX Stock Forecast page.

ASE Technology Holding Posts Strong 2025 Revenue Growth on Surging ATM Business

On January 9, 2026, ASE Technology Holding Co. reported unaudited consolidated net revenues for December, the fourth quarter and full year 2025, showing solid year-on-year growth across its operations. December 2025 net revenues rose 11.3% year-on-year in New Taiwan dollars to NT$58.9 billion, while fourth-quarter revenues increased 9.6% from a year earlier to NT$177.9 billion and 5.5% sequentially, underscoring robust demand into year-end. For full-year 2025, consolidated revenues climbed 8.4% in NT$ to NT$645.4 billion (US$20.8 billion), highlighting ASE’s strengthened position in the global semiconductor services market after a recovery over 2024. The company’s ATM assembly, testing and material segment outpaced the group overall, with December ATM revenues up 25.9% year-on-year and 4.2% month-on-month, and full-year ATM revenues jumping 19.4% in NT$ and 23.2% in US$, suggesting continued share gains and strong utilization in its core packaging and testing business, which is a key driver for margins and long-term competitiveness.

The most recent analyst rating on (ASX) stock is a Hold with a $54.85 price target. To see the full list of analyst forecasts on ASE Technology Holding Co stock, see the ASX Stock Forecast page.

ASE Technology Reports November 2025 Revenue Growth

On December 9, 2025, ASE Technology Holding Co., Ltd. announced its unaudited consolidated net revenues for November 2025, reporting NT$58,820 million (approximately US$1,903 million). This represents a sequential decrease of 2.3% in NT$ and 3.9% in US$, but a year-over-year increase of 11.1% in NT$ and 15.5% in US$. The ATM assembly, testing, and material business segment saw a slight sequential increase of 0.1% in NT$ but a 23.6% year-over-year rise. These figures highlight ASE’s robust growth compared to the previous year, despite a slight monthly decline, indicating a strong market position and resilience in the semiconductor industry.

The most recent analyst rating on (ASX) stock is a Hold with a $15.50 price target. To see the full list of analyst forecasts on ASE Technology Holding Co stock, see the ASX Stock Forecast page.