ASE Technology revenue jumps 26.7% as AI packaging demand surges

ASE Technology Holding Co. reported second-quarter net revenue of NT$191,064 million ($5.99 billion), up 26.7% from a year earlier and 10% sequentially, as demand for AI-related semiconductor packaging and testing services accelerated.

"The results reflect broad-based growth across both our LEAP advanced packaging and mainstream ATM businesses," the company said in a statement. "AI-related demand remained a key driver, more than offsetting softness in traditional consumer markets."

Revenue from the company's ATM (assembly, test, material) segment grew 9% to 11% quarter over quarter, in line with management's prior guidance. The EMS (electronic manufacturing services) business also posted year-over-year growth of at least 10%, supported by stronger demand for AI accelerator products and an improving product mix. The Zacks Consensus Estimate had pegged second-quarter revenue at $5.99 billion and earnings at 17 cents per share, a 54.55% increase from the prior-year period. ASE guided for gross margin improvement of 20 to 100 basis points sequentially and operating margin expansion of 50 to 120 basis points, with ATM gross margin expected at 26% to 27%.

The results cement ASE's position as a key beneficiary of the AI infrastructure buildout. Shares of the Taipei-based company have surged about 128% year to date, reflecting investor confidence in its LEAP advanced packaging capacity and exposure to AI-driven chip demand. Investors will watch the company's third-quarter guidance for signs of sustained momentum as hyperscalers continue to expand AI server deployments.

This article is for informational purposes only and does not constitute investment advice.