ASE Technology Surges 169% YTD: Should You Still Buy the Stock? – July 7, 2026
ASE Technology Surges 169% YTD: Should You Still Buy the Stock? – July 7, 2026
Publish Date: 2026-07-07 09:03:00
Source Domain: www.zacks.com
Key Takeaways
- ASE Technology is seeing strong AI packaging demand, driving record ATM revenues and higher LEAP growth.
- ASX raised 2026 capital spending and expects LEAP revenues to exceed $3.5 billion in 2026.
- ASX is expanding margins through a higher LEAP mix while trading below industry and peer valuations.
ASE Technology Holding (ASX Quick QuoteASX – Free Report) shares have rallied 169% year to date (YTD), outperforming the Zacks Electronics – Semiconductors industry’s return of 42.7%. The stock also outperformed its industry peers, including FormFactor (FORM Quick QuoteFORM – Free Report) , Lam Research (LRCX Quick QuoteLRCX – Free Report) and Applied Materials (AMAT Quick QuoteAMAT – Free Report) . Shares of FormFactor, Lam Research and Applied Materials have returned 112.9%, 103.6% and 130.9%, respectively, YTD.
The outperformance of ASE Technology’s shares raises the question: Does it still have room to run, or is it time for investors to consider taking profits? Let’s find out.
YTD Price Return Performance
Image Source: Zacks Investment Research
AI Packaging Demand Boosts ASX’s Prospects
ASE Technology is benefiting from the growing demand for AI chip packaging. In the first quarter of 2026, ASX’s Assembly, Testing and Materials (ATM) business performed better than expected, despite having fewer working days and did not see the usual seasonal slowdown. Management said AI-related products are changing the normal demand pattern, helping reduce the impact of seasonality on the business.
Advanced packaging continues to be the main growth driver. ASE reported record ATM revenues of NTD 112.4 billion in the first quarter, up 2% sequentially and 30% year over year. Higher factory utilization and a larger contribution from Leading Edge Advanced Packaging (LEAP) services were the key contributors to growth. The company said demand for AI and computing products remained…
