Ongoing earnings upside; Buy and raise TP: TSMC‘s turning aggressive on CoWoS plan, CPU-driven FOCOs business upside, and further price hikes possible; Buy

Research evidence excerpt

Ongoing earnings upside; Buy and raise TP: TSMC‘s turning aggressive on CoWoS plan, CPU-driven FOCOs business upside, and further price hikes possible; Buy

ctively contributing 12% of

our 2027F EPS estimate hike. Our new TP of TWD730 is based on 25x 2027-28F average EPS

(from 2027F EPS and TWD575 TP) and unchanged target P/E of 25x (at the high-end of its

historical range). The stock currently trades at 21.7x 2027-28F average EPS. We maintain our Buy Source: LSEG, Nomura

rating.

Can the share price uptrend sustain? Research Analysts

In Oct-2025, we upgraded ASE from Neutral to Buy (report), citing reasons such as share price

Semiconductorunderperformance (at that time), ASE becoming a prime gainer from TSMC’s oS outsourcing,

Aaron Jeng, CFA - NITBimproving product mix and negotiation power. We maintain our positive view, given ASE’s revenue,

aaron.jeng@nomura.com

margin and capex growth acceleration (report), and we also see consensus earnings estimate +886(2) 21769962

hikes over the past one year (Fig.10). ASE’s share price has outperformed major indices and

Donnie Teng - NIHKpeers since Oct-25 (up 155% vs. TAIEX up 58%, Fig.7), but we expect the stock to extend the rally

donnie.teng@nomura.com

on potential upside from its full process platform. We believe ASE is also at the forefront to gain from +852 2252 1439

the value of latest technologies such as panel level packaging and CPO, which we believe are

Vivian Yang - NITBcurrently understated and difficult to quantify, but could have significant upside potential.

vivian.yang@nomura.com

Year-end 31 Dec FY25 FY26F FY27F FY28F +886(2) 21769970

Currency (TWD) Actual Old New Old New Old New Eric Chen, CFA - NITB

eric.chen@nomura.comRevenue (mn) 645,388 807,643 810,252 911,129 962,066 0 1,104,144

+886(2) 21769965