ASX

ASE Technology (ASX) and Amkor Technology (AMKR) are both semiconductor assembly and testing companies benefiting from AI-driven demand for advanced packaging. ASX shows stronger momentum with LEAP revenues expected to double in 2027, expanding margins above 30%, and significant CapEx investments.

AMKR faces near-term headwinds from weak smartphone demand and production transitions. ASX is rated a Strong Buy with a higher valuation multiple, while AMKR receives a Hold rating.

ASE Technology, the world's largest outsourced semiconductor assembly and test (OSAT) provider, has dropped to an attractive buy zone near $40 during recent market volatility. With a Zacks #1 Rank, the company is projected to achieve over 125% EPS growth by 2026 with topline growth reaching $26 billion. ASE benefits from the AI boom, advanced packaging demand, and foundry capacity constraints that are driving customers to outsource more backend semiconductor services.

ASE Technology Hldg (ASX) is highlighted as a solid choice for trend investors due to its 20.9% price gain over 12 weeks and 17.6% gain over 4 weeks, indicating sustained upward momentum. The stock trades at 95.9% of its 52-week high-low range and carries a Zacks Rank #2 (Buy) rating with a Strong Buy average broker recommendation, suggesting strong fundamental support for continued price appreciation.

ASE Technology (ASX) is experiencing strong momentum driven by AI-related demand for advanced packaging services. The company expects 2026 LEAP revenues to exceed $3.5 billion with plans to double them in 2027, supported by $2 billion in additional CapEx.

While execution risks exist from managing multiple facility projects, strong demand for CoWoS and panel-level packaging provides additional growth drivers. The stock trades at a premium valuation (26.32X P/E) reflecting high growth expectations.

TTM Technologies (TTMI) reported Q3 2026 non-GAAP EPS of $1.46, up 117.9% YoY, and revenues of $1.2B, up 59.9% YoY, both beating estimates. Strong AI-related demand drove Data Center and Networking sales up 115%. The company guides for 2027 revenues of $6.5B-$6.75B and EPS of $8.10-$8.90, with a $400M capacity expansion planned for 2028.

Vicor Corporation (VICR) shares gained 4.5% following strong third-quarter 2026 results, with revenues surging 78.5% year-over-year to $197.11 million. The company benefited from robust AI-driven demand, with Advanced Products revenues increasing 47.5% sequentially and royalty revenues jumping 206.6% year-over-year to $66.6 million. The order backlog increased 166% year-over-year to $406 million, and the company is expanding manufacturing capacity with two new facilities expected to increase capacity nearly fivefold.

Lam Research (LRCX) delivered exceptional Q1'27 results with EPS of $2.20 (up 74.6% YoY) and revenues of $8.22B (up 54.4% YoY), beating consensus estimates. Systems revenues surged 61.6% driven by strong NAND and foundry demand, while gross margin hit a record 52.4%. The company generated record free cash flow of $3.24B and projects Q2 EPS of $2.33, with expectations for wafer fabrication equipment spending to exceed $200B in 2027.

Tesla and SpaceX plan to build Terafab, a $16.8 billion chip-making complex in Texas spanning over 100 million square feet, with manufacturing expected to begin by 2029. Intel will design and manufacture chips using its 14A process, while Musk confirmed Tesla and SpaceX will build and operate the facility themselves. Investors can position for the buildout through chip equipment makers, packaging/testing companies, materials suppliers, power infrastructure providers, and semiconductor ETFs.

Synaptics (SYNA) surged 14.1% to $121.1 in heavy trading, driven by its expanding edge AI and connectivity business. The company is expected to report quarterly earnings of $1.23 per share (+12.8% YoY) with revenues of $318.16 million (+8.8% YoY).

However, unchanged earnings estimate revisions over the past 30 days suggest caution about sustained momentum. SYNA holds a Zacks Rank #1 (Strong Buy) rating.

Diodes Incorporated completed a $250 million acquisition of ElevATE Semiconductor to strengthen its position in the automated test equipment market. ElevATE is expected to contribute $50M in revenue within the first 12 months and deliver over 20% annual revenue growth thereafter. The deal adds higher-margin analog and mixed-signal products to Diodes' portfolio, supporting margin recovery amid improving demand in automotive, computing, and industrial sectors.