ASE Technology Holding (ASX) shares surged 6.84% during intraday trading on Thursday, driven by a stellar second-quarter earnings report that handily beat analyst expectations and a significant upward revision to its capital expenditure plans.
The semiconductor packaging and testing giant reported Q2 earnings per share of $0.29, far exceeding the consensus estimate of $0.17 and representing a 163.64% increase from the same period last year. Revenue reached $6.035 billion, up approximately 27% year-over-year and above the $5.990 billion forecast. Net income attributable to shareholders more than doubled to NT$21.07 billion, fueled by robust growth in its Assembly, Testing and Materials (ATM) segment, which posted a 36.3% year-over-year revenue increase.
Further boosting investor sentiment, ASE Technology announced it is raising its 2026 capital expenditure by $2 billion to approximately $10.5 billion, citing strong demand. The company noted that revenue from its leading-edge advanced packaging (LEAP) business is tracking ahead of its prior guidance of $3.5 billion, with plans to double LEAP revenue in 2027, underscoring confidence in sustained momentum driven by AI-related demand for new hardware, connectivity, and storage devices.