ASE: Buy Rating Backed by Aggressive AI-Focused Capacity Expansion and Margin Upside Potential

ASE Technology Holding Co, the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Haas Liu from Bank of America Securities reiterated a Buy rating on the stock and has a $48.00 price target.

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Haas Liu has given his Buy rating due to a combination of factors tied to ASE’s aggressive yet well-supported expansion strategy. Year-to-date equipment purchases already cover a large portion of the company’s 2026 capital expenditure plan, with spending focused on advanced 2.5D packaging and test capacity that directly addresses surging AI CPU and ASIC demand.

Liu also expects further upside to capital spending in 2026–27, which, despite higher depreciation and funding needs, should drive strong IC ATM revenue growth and margin improvement as utilization and pricing rise. Together with stable EPS forecasts, attractive projected returns on the LEAP business, and a valuation based on a premium P/E multiple, these dynamics underpin his view that ASE’s shares merit a Buy rating and potential re-rating as high-performance computing gains accelerate.

ASX’s price has also changed dramatically for the past six months – from $17.620 to $39.650, which is a 125.03% increase.