Dr. Stoxx
Stock Trader & Author, Oxford DPhil, Trading Education
As AI chips grow more complex, packaging becomes more valuable, which favors ASE Technology, the world's largest outsourced chip packager. Its offering spans 2.5D/3D, HBM integration and next-generation packaging. Q2 revenue rose 27% year over year while EPS nearly tripled, and the chart shows a massive cup pattern. x.comÂ
ASE Technology should hit a new high within a couple of quarters even though it got ahead of itself, because advanced packaging is insanely important. Its EPS is expected to rise from $0.44 in 2025 to $1.80-2.00 next year. x.comÂ
ASE is a long on advanced packaging, as it eyes doubling its leading-edge advanced packaging revenue by 2027. @Colosteve2000 adds that, given the earnings call, a 4x would not be surprising if ASE can bring production up to par fast enough. x.com x.comÂ
War escalation and the midterms will keep investors from increasing gross or net semiconductor exposure. SOXX will take out its July lows before any sustained rally; against a suggested 5% dip and 50% rebound, the path is '5% down then 100% down.' x.com x.comÂ
Semiconductor stocks feel overextended and need a period of digestion. x.comÂ
SOXX's extreme selling sets up a semiconductor relief bounce next week before another leg lower. Per Heis, SOXX had its third-highest red-volume week and tied its longest nine-day losing streak; the four other top red-volume weeks averaged an 8.4% gain the following week. This is not a heavy bet: preserve capital, keep short-term setups small and accumulate core dips for the long term. x.comÂ
Amtech Systems' 131x trailing P/E hides an advanced-packaging turnaround. Its TrueFlat technology on Pyramax vacuum reflow platforms tackles substrate warpage in stacked dies and HBM, and these systems are over 30% of thermal segment revenue, heading past 40%. A semi-fabless shift under CEO Robert Daigle lifted gross margin to 47.7% on Q2 revenue up 31%, and its silicon carbide polishing consumables are rebounding. Institutions buying a $60M raise at $20.50 signal significant upside. x.comÂ
Semiconductor earnings will be good, supporting a likely run into Q3 results. The group looks oversold, and the Anthropic/CoreWeave news is noise. x.com x.com x.com x.comÂ
Teradyne is trying to push off its 200 EMA and support zone after a stellar Q2. Adjusted EPS was $2.47 versus $2.09 expected and sales $1.329B versus $1.223B, and it raised Q3 EPS and sales guidance. x.comÂ
Teradyne shows leadership character in two of the hottest themes, semiconductor testing and robotics: it has posted back-to-back strong earnings and every dip to its 50-day moving average gets bought. It also leads industrial automation through Universal Robots and MiR, helping factories automate repetitive, high-precision, labor-heavy tasks. x.comÂ