ASE Technology Holding Co's stock surged 9.03% in pre-market trading on Tuesday, marking a significant rebound for the semiconductor packaging and testing leader.

The sharp rise is primarily attributed to Advanced Micro Devices Inc.'s announcement of an investment exceeding $10 billion in Taiwan's semiconductor and artificial intelligence ecosystem. ASE Technology, as a core packaging and testing partner, is positioned to directly benefit from this massive investment through expected capacity expansion and increased orders. The collaboration includes developing next-generation wafer-based 2.5D bridge interconnect technology to support AMD's upcoming Venice CPU and Helios AI platform deployments.

The rally also represents a technical rebound from notably oversold conditions, following a prior decline of over 15% due to large-scale insider selling and broader sector weakness. The company's robust fundamentals, including strong first-quarter earnings, packaging service price increases of 5% to 20%, and a raised advanced packaging revenue target to $3.5 billion, provided underlying support for the recovery.