We recently published a list of 10 Stocks That Could Skyrocket After Jensen Huang’s Earnings Call. In this article, we are going to take a look at where ASE Technology Holding Co., Ltd (NYSE:ASX) stands against other stocks that could skyrocket after Jensen Huang’s earnings call.
DeepSeek AI revelations were the biggest concern for investors when the month started. Many had started questioning if investing so much in AI infrastructure was worth it. Since then, the market sentiment has turned positive again and many of the stocks have recovered. We are now closing in on the most anticipated earnings call of the year so far: Jensen Huang telling us on 26th February how his company performed in the previous quarter.
Investing in the supply chain of big companies has proven beneficial over the years. As the stronger and the bigger company grows, it helps the smaller companies which are an important part of the supply chain also grow.
The Santa Clara-based chipmaker’s earnings will affect the whole market, not just its suppliers. Analysts expect an earnings beat on both the EPS and revenue. This is what the KeyBanc analysts had to say about the earnings:
“Despite prior concerns regarding constraints associated with the ramp of GB200 NVL servers, we expect NVDA to report strong F4Q results, which we anticipate will solidly beat, and to guide F1Q conservatively and moderately higher than consensus.”
We decided to take a look at companies that will benefit from the above-mentioned earnings beat. To come up with our list of 10 stocks that could skyrocket after Jensen Huang’s earnings call, we looked at stocks that are major suppliers of the company.
A close up of a high-tech chip, intricate details of its single layers visible.
ASE Technology Holding Co., Ltd (NYSE:ASX)
ASE Technology Holding Co., Ltd is an electronic manufacturing and semiconductors testing and packaging services provider. The company constructs, develops, supplies, manages, and leases real estate properties. It also provides equipment leasing, warehousing management, information software, and investment advisory services.
The company recently presented its 1st quarter and full-year guidance for 2025. As per the guidance, in Q1 the company expects its ATM revenue to decline by mid-single digits QoQ, while the gross profit margin is projected to drop by a little more than 1%. In contrast to that, the company predicts mid-single-digit growth in ATM revenue for the complete year. This anticipated revenue growth is supported by the increased demand for leading-edge advanced packaging and testing.
This guidance was based on the recent Q4 earnings which showed a 1% sequential and YoY rise in net revenues. Though the net income of the company was down, it was due to the high operating expenses and currency instability. Operating expenses went up because of the growth in advanced testing and packaging, labor costs, and employee benefits. If Silicon Valley’s leading GPU maker announces positive earnings this week, ASX stock could propel upwards bringing in handsome gains for investors.
Overall, ASX ranks 3rd on our list of stocks that could skyrocket after Jensen Huang’s earnings call. While we acknowledge the potential of ASX as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as ASX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
