Key Takeaways
- ASE Technology stock rose 5% today after rival Amkor Technology posted record Computing revenue, even though Amkor’s results and outlook missed estimates.
- Amkor’s customers are paying in advance to lock in capacity, a sign that demand for advanced packaging is strong enough to lift ASE too.
- A report that TSMC may raise its CoWoS packaging prices by up to 20% points to tight supply, which could support ASE’s gross margin.
- ASE reports its third quarter later this week, and after a 148% gain this year, the stock trades well above its usual multiple.
ASE Technology (ASX) stock rose 5% today, thanks to its biggest US-listed packaging rival.
Amkor Technology (AMKR) missed estimates after Monday’s close, then jumped 8% anyway on a strong day for chip stocks.
A miss investors were happy to look past
Amkor’s third-quarter earnings and revenue both missed consensus, and so did its fourth-quarter guidance. But underneath:
- Record Computing revenue, up 37% from a year ago, at 26% of sales versus 19% a year earlier
- Gross margin of 18.3%, up from 14.3%
- Computing expected to grow more than 50% year over year in the fourth quarter
CEO Kevin Engel said in the earnings release that Amkor is “benefiting from expanding customer commitments that improve visibility.” On the call, management said about a dozen customers are paying in advance for capacity.
Customers don’t prepay for capacity they expect to have plenty of.
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Why ASE investors care
ASE has seen the same shift: computing went from 22% of its packaging and test revenue in early 2025 to 30% in the second quarter of 2026.
Plus: Taiwan’s [Commercial Times](LINK NEEDED) reported this morning that Taiwan Semiconductor Manufacturing (TSM) may raise prices for CoWoS, its advanced packaging for AI chips, by up to 20%.
A hike that big would mean AI packaging is short of supply, which gives ASE room to win overflow work and charge more. That would show up in ASE’s gross margin, which has been climbing since 2023.
It reached 21.0% in the second quarter of 2026, above fiscal 2022’s 20.1%, and management guided to 20.5% to 21.5% for the third.
The bar is high
ASE reports its third quarter later this week. Management guided to 21% to 22% revenue growth from the second quarter, and analysts see revenue growing 31% this year and 25% in 2027.
Amkor’s miss came from smartphones, so I don’t see it pulling those estimates down.
The catch is the price. ASE stock was already up 148% this year, and at Monday’s close it traded at 27x forward earnings (closer to 29x after today’s move), against a five-year average of 15x.
My take: Amkor’s quarter bodes well for ASE’s AI business and its margins. But at nearly twice its usual multiple, ASE needs this week’s report to prove it.
Of course, TSMC’s price hike is still only a report, and ASE’s own outlook will matter more than Amkor’s.
So what is ASE Technology stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
