ASE Technology Holding Co (ASX) AI Stock Analysis

• Market Cap: $39.00B
• Dividend Yield: 2.29%
• Average Volume (3M): 5.96M
• Price to Earnings (P/E): 36.0
• Beta (1Y): 1.52
• Revenue Growth: 8.01%
• EPS Growth: 10.41%
• Country: US
• Employees: 96,436
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.16
• Shares Outstanding: 2,218,071,000
• 10 Day Avg. Volume: 6,141,901
• 30 Day Avg. Volume: 5,963,770
• PEG Ratio: 6.53
• Price to Book (P/B): 2.32
• Price to Sales (P/S): 1.22
• P/FCF Ratio: 250.90
• Enterprise Value/Market Cap: 24.25
• Enterprise Value/Revenue: 1.51
• Enterprise Value/Gross Profit: 9.46
• Enterprise Value/Ebitda: 8.23
• 1Y Price Target: $24.35
• Price Target Upside: 69.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $19.00 ▲(31.94% Upside)

ASE Technology Holding Co's overall stock score is driven by solid financial performance and positive earnings call sentiment, despite concerns over negative free cash flow and high valuation. Technical indicators support a bullish trend, contributing positively to the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategy, enhancing ASE's competitive position in the semiconductor industry.

Market Position

The robust growth in the ATM segment underscores ASE's strong market position and ability to capitalize on industry trends, supporting long-term stability.

Profit Margin Improvement

Improved profit margins reflect efficient cost management and operational effectiveness, contributing to sustainable financial health and competitive advantage.

Negative Factors

Negative Free Cash Flow

Negative free cash flow suggests potential liquidity issues, limiting ASE's ability to invest in growth opportunities and manage financial obligations effectively.

Foreign Exchange Impact

Adverse foreign exchange movements can erode profit margins, posing a risk to financial performance and requiring strategic hedging to mitigate impacts.

Increased Operating Expenses

Rising operating expenses, particularly in R&D, could pressure profit margins if not offset by revenue growth, impacting long-term profitability.

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

ASE Technology Holding Co demonstrates solid revenue growth and stable profitability margins, indicative of a strong market position in the semiconductor industry. The balance sheet reflects prudent financial management with moderate leverage. However, the negative free cash flow is a concern, pointing to potential challenges in managing capital expenditures and investments.

Income Statement

ASE Technology Holding Co shows a stable revenue growth trajectory with a TTM revenue growth rate of 1.36%. The gross profit margin is consistent at around 16.68%, indicating efficient cost management. However, the net profit margin has slightly decreased to 5.48%, which could suggest rising expenses or competitive pressures. The EBIT and EBITDA margins are stable, reflecting solid operational performance.

Balance Sheet

The company's debt-to-equity ratio is 0.79, which is reasonable for the semiconductor industry, indicating a balanced approach to leveraging. The return on equity (ROE) is 11.02%, showing effective use of equity to generate profits. However, the equity ratio is not explicitly calculated, but the overall asset management appears stable.

Cash Flow

The operating cash flow is strong, but the free cash flow is negative, indicating potential challenges in covering capital expenditures. The free cash flow growth rate is volatile, with a significant negative shift in the latest period. The operating cash flow to net income ratio is 0.47, suggesting adequate cash generation relative to net income, but the negative free cash flow to net income ratio highlights cash flow management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	628.26B	607.72B	574.18B	679.14B	564.46B	455.06B
Gross Profit	99.96B	93.49B	85.73B	132.56B	104.89B	70.16B
EBITDA	114.94B	108.53B	103.37B	140.56B	134.64B	85.27B
Net Income	35.32B	33.15B	31.30B	62.86B	63.29B	26.33B
Balance Sheet
Total Assets	842.64B	741.06B	666.58B	707.07B	672.93B	583.86B
Cash, Cash Equivalents and Short-Term Investments	83.41B	85.87B	71.37B	65.60B	79.15B	56.43B
Total Debt	286.76B	201.41B	179.22B	190.07B	215.68B	203.24B
Total Liabilities	503.09B	398.79B	348.47B	387.14B	398.30B	349.60B
Stockholders Equity	317.04B	320.03B	297.83B	301.29B	260.08B	218.63B
Cash Flow
Free Cash Flow	-224.00B	2.97B	51.09B	30.98B	7.62B	10.19B
Operating Cash Flow	342.46B	84.74B	104.56B	105.21B	78.79B	69.52B
Investing Cash Flow	-577.67B	-86.53B	-54.87B	-75.98B	-54.95B	-64.15B
Financing Cash Flow	279.44B	-6.53B	-47.97B	-62.11B	524.22M	-14.98B

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: 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 16.34, below the 50-day MA of 15.59, and above the 200-day MA of 11.50, indicating a bullish trend. The MACD of 0.82 indicates Negative momentum. The RSI at 79.40 is Negative, neither overbought nor oversold. The STOCH value of 95.46 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ON	73 Outperform	$23.64B	77.53	3.87%	―	-16.13%	-81.06%
ASX	69 Neutral	$39.00B	35.99	11.17%	2.29%	8.01%	10.41%
AMKR	69 Neutral	$12.75B	41.86	7.27%	0.81%	0.13%	-16.17%
UMC	69 Neutral	$21.99B	16.79	10.97%	6.06%	5.87%	-20.93%
GFS	63 Neutral	$22.17B	-490.05	-0.38%	―	0.25%	-106.22%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
STM	60 Neutral	$25.68B	50.70	3.00%	1.28%	-17.33%	-76.71%

ASE Technology Holding Co Corporate Events

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.

ASE Technology Reports October Revenue Growth in ATM Segment

On November 10, 2025, ASE Technology Holding Co., Ltd. announced its unaudited consolidated net revenues for October 2025. The company reported net revenues of NT$60,231 million (US$1,980 million), reflecting a slight sequential decline but a year-over-year increase. The ATM business saw a 3.0% sequential and 22.9% year-over-year growth, highlighting the company’s strong performance in this segment. This announcement underscores ASE’s resilience and growth in the semiconductor industry, despite market challenges.

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.

ASE Technology Reports Strong Q3 2025 Earnings with Significant Revenue Growth

On October 30, 2025, ASE Technology Holding Co. reported its third-quarter earnings for 2025, revealing a 12% increase in total net revenues compared to the previous quarter, reaching NT$168,569 million. The company’s net income attributable to shareholders rose by 45% quarter-over-quarter, indicating a strong financial performance. The earnings report highlights ASE’s robust growth in both its ATM and EMS segments, with notable year-over-year improvements in operating income and gross profit. These results underscore ASE’s solid market positioning and its ability to navigate the competitive semiconductor industry effectively.

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.

ASE Technology Announces Strong Q3 2025 Financial Results

ASE Technology Holding Co., Ltd. reported its unaudited financial results for the third quarter of 2025, showing a 5.3% year-over-year increase in net revenues to NT$168,569 million and a sequential rise of 11.8%. The company’s net income attributable to shareholders rose to NT$10,870 million, with basic earnings per share increasing to NT$2.50. Despite a net foreign exchange loss due to the appreciation of the U.S. dollar against the New Taiwan dollar, ASE Technology saw improvements in gross and operating margins, reflecting its robust operational performance.

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.