ASE Technology sees AI chip demand boost but insider selling and high valuation raise caution.

ASE Technology Holding Co Ltd reported strong growth driven by demand for AI chip packaging, with gross margins rising to 20.1% from 16.8% year-over-year. The company expects its advanced packaging revenue to exceed $3.5 billion in 2026, reflecting robust customer demand for AI and high-performance computing chips. However, insider selling by Chief Administration Officer Uang Du-Tsuen, who sold 11,000 shares recently, and valuation concerns from GuruFocus suggesting the stock is overvalued, highlight potential risks. Investors should weigh the company's solid growth prospects against these valuation and insider activity signals.