QM · rank #5 · 2026-10-21
ASX
NYSE · $89.65B (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +281.59% |
|---|---|
| ROE TTM Return on equity, trailing 12 months. | +17.0% |
| Profit margin Net profit margin, trailing 12 months. | +8.6% |
| Market cap (USD) Size filter: > $500M required. | $89.65B |
| Anchor (recent) Close on 2026-09-21 | $43.73 |
| Anchor (far) Close on 2025-09-19 | $11.46 |
The AI research card
Independent qualitative review of each pick before the order is placed. On the rare day the research service is unavailable, the paper book trades on the quant ranking alone and no card appears here.
Summary
ASE Industrial Holding (ASX) is the world's largest outsourced semiconductor assembly and test (OSAT) provider, generating accelerating revenue through advanced packaging, heterogeneous integration, and high-volume test services concentrated in AI/HPC demand.
Rationale
The momentum signal (2.82) is directly anchored in fundamental reality — Q3 2026 revenue +44.8% YoY, net income +180% YoY, LEAP revenue tracking above target, and a $2B capex raise signal that pricing power and capacity utilization are driving genuine earnings acceleration, not sentiment alone.
Material risks
- 1TSMC, Intel, and Samsung are actively internalizing advanced packaging (CoWoS, Foveros, etc.), which is the exact capability ASE monetizes — if hyperscaler AI chip customers follow their foundry partners in-house, ASE's addressable outsourced volume shrinks structurally, breaking the bottleneck-solver thesis.
- 2The $10.5B 2026 capex plan front-loads depreciation and execution risk into a cycle where Amkor and JCET are simultaneously adding competing capacity, raising the probability of utilization compression and margin erosion precisely as the growth rate peaks.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.