Capital Securities rates ASE Technology stock Buy on USD 3.50 billion LEAP target

Published on 10/06/2026 at 16:56 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Q2 revenue rose 27 percent year over year to TWD 191.06 billion. ASE Technology stock was last at EUR 39.00 on October 2, 2026 after EUR 40.40.

ASX, US00215W1009, Illustration mit AI erstellt.

ASE Technology Holding Co., Ltd. (ISIN US00215W1009) was last at EUR 39.00 in Frankfurt on October 2, 2026 at 8:01 a.m. CEST, versus the prior close of EUR 40.40. Capital Securities analyst Li-Yen Chen rated ASE Technology stock Buy in a September 23, 2026 report, while management guided to LEAP revenue above USD 3.50 billion for 2026, according to Investor's Business Daily.

Profit growth outpaces revenue

ASE reported TWD 191.06 billion in consolidated net revenue for the second quarter of 2026, up 27 percent from the second quarter of 2025. Net income attributable to shareholders increased 180 percent year over year, according to ScanX News.

The 153 percentage point gap between net income growth and revenue growth shows how sharply profit conversion improved during the quarter. Gross margin reached 21.00 percent, compared with 17.00 percent in the year-earlier quarter, while operating income rose 107 percent year over year.

LEAP target raises the spending bar

ASE expects leading-edge advanced packaging services to generate more than USD 3.50 billion in 2026 and aims to reach at least USD 7.00 billion in 2027, according to Investor's Business Daily. The source also reported that the company expects 2026 capital expenditures of USD 10.50 billion, compared with USD 5.50 billion in 2025.

That investment gives the outlook a clear execution test: ASE must expand advanced-packaging capacity while preserving the margin gains already visible in the second-quarter figures. Management projected third-quarter 2026 consolidated revenue growth of 21 percent to 22 percent quarter over quarter and a gross-margin range of 20.50 percent to 21.50 percent, according to ScanX News.

Frankfurt quote stays below its high

The Frankfurt quote of EUR 39.00 on October 2, 2026 stood EUR 1.40 below the October 1 prior close of EUR 40.40, a minus 3.47 percent daily move. The same quote page showed a 52-week range of EUR 9.30 to EUR 40.40 and a market capitalization of EUR 64.70 billion, placing the price EUR 1.40 below the reported high. The stock's valuation now reflects both the rapid earnings expansion and the capital required to support AI-related packaging demand.