ASE Technology shifts to high-margin packaging, boosting revenue and margins, rated Buy.

ASE Technology Holding is rated Buy due to its strategic shift from low-margin semiconductor assembly to high-margin specialized packaging services through its LEAP Services division. LEAP's revenue is projected to grow from $600 million in FY2024 to over $3.5 billion by FY2026, with a current gross margin of 26%, lifting overall company margins above 20%. Despite trading at relatively high multiples, ASE is considered undervalued given its improving business mix and growth prospects.