Pocket Pivot - ASX - Semiconductors - September 18, 2026

Why this is a Pocket Pivot

ASX triggered a Pocket Pivot signal on September 18, 2026, one of five stocks flagged by the filter that day and ranked first among them. The stock closed up 4.10% on volume 3.11 times the prior session, exceeding the highest down-day volume of the preceding ten sessions, which is the core of the setup: an accumulation day confirmed by expanding volume within a constructive base or advance, with price not yet breaking out to new highs. The close stood above the 10, 20, 50, 120 and 200-day moving averages, the 20-day flattened and turned up, and the 120-day stayed on an upward slope, so the intermediate trend structure was intact. On relative strength, RPS120 at 94.4 and RPS250 at 98.6 sit well inside leadership territory, meeting the filter's requirement.

How the filter reads it

The dimensions the Pocket Pivot formula checks, with ASX's reading on September 18, 2026.

Dimension	Reading	Result
Volume	Advancing on heavy volume (+4.10%, volume 3.11×)	Pass
Trend structure	Moving averages stacked and rising	Pass
Price position	In the upper range	Pass
Relative Strength	In leadership territory (RPS120 94.4 / RPS250 98.6)	Pass
Signal uniqueness	First trigger in about a month	Yes

Fundamental Fact Sheet

Market Cap ≈ $108.4B

PE (TTM) 50.77

Forward PE 21.31

ROE 17.01%

Net margin 8.55%

Revenue YoY +26.7%

Valuation metrics are from the latest snapshot; profitability and growth are trailing-twelve-month figures. These numbers are for reference only and do not constitute investment advice. Data sources and calculation methods may differ from official filings; verify independently before making any decision.

The company is the world's largest OSAT provider, ranked first in the global packaging and testing market in 2025, with an estimated 35%-40% share of the global OSAT market. Packaging and testing (ATM) together account for 61% of revenue and are the profit core; EMS is 38% but carries lower margins. In the Q4 2025 revenue mix, IC packaging accounted for 49%, IC testing 12%, and electronics manufacturing services 38%.

Growth

Q2 2026 net profit rose 180.1% year on year and 48.9% quarter on quarter, the fourth consecutive quarterly increase.
Q2 2026 revenue grew 26.8% year on year, well above the 8.4% for full-year 2025, so revenue growth is accelerating.
LEAP advanced packaging revenue: about $0.6B in 2024, about $1.6B in 2025, and guidance of about $3.2B for 2026, doubling each year.

Business catalysts

Q3 2026 results on 2026-10-29: whether the 48.9% quarterly profit momentum continues, and the pace of LEAP revenue.
Its own FOCoS platform enters mass production at Kaohsiung in H2 2026: watch yields and orders landing from AMD and Broadcom.
A fully automated 310mm panel-level packaging line in H1 2027, aimed at next-generation AI and HPC packaging orders.

Risks

Tight valuation: PE (TTM) of 50.77 leans heavily on 2026-2027 earnings landing, and the 21.31 forward PE already prices in high growth.
Strained balance sheet: interest-bearing debt of NT$296.4B, up 27.6% year on year, with negative free cash flow; roughly $10.5B of 2026 capex makes cash pressure during expansion a structural issue.

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