NextFin News - ASMPT Ltd. issued a second-quarter revenue forecast that surpassed market expectations on Tuesday, signaling that the global appetite for artificial intelligence infrastructure is finally translating into concrete orders for semiconductor assembly equipment. The Hong Kong-listed company projected revenue for the period ending June 30 to fall between $540 million and $600 million. At the $570 million midpoint, this represents a 12.2% sequential increase and a 37% surge from the same period last year, comfortably exceeding the consensus among analysts tracked by Bloomberg.
The optimistic outlook follows a first quarter where bookings—a critical leading indicator for the chip-tool industry—jumped 46% from the previous three months to reach $727 million. This surge was primarily fueled by the semiconductor segment, particularly for advanced packaging technologies like Thermo-Compression Bonding (TCB) and Hybrid Bonding. These specialized tools are essential for manufacturing the high-performance logic chips and High Bandwidth Memory (HBM) that power AI training clusters. While the Surface Mount Technology (SMT) division saw strong demand from AI servers and the Chinese electric vehicle sector, management noted that SMT bookings might moderate in the second quarter due to a high base effect.
The results provide a measure of validation for ASMPT’s strategic pivot toward "advanced packaging," a field where it competes with rivals like Besi and Kulicke & Soffa. According to a research note from Citigroup, the firm’s TCB momentum is "solidifying its technology leadership" in logic and memory applications. However, it is important to note that Citigroup has maintained a relatively constructive stance on the semiconductor equipment sector throughout the current cycle, and their optimism regarding ASMPT’s market share gains in HBM is not yet a universal consensus. Some analysts remain cautious about the pace at which traditional, non-AI semiconductor demand will recover, which still accounts for a significant portion of ASMPT's legacy business.
Financially, the first quarter showed signs of operational recovery despite a complex bottom-line picture. Revenue from continuing operations reached $507.9 million, essentially flat compared to the fourth quarter of 2025 but up 32% year-over-year. Adjusted net profit for continuing operations rose 123.8% sequentially to HK$335.2 million, aided by a gross margin expansion to 39.5%. This margin improvement reflects a more favorable product mix dominated by high-value advanced packaging tools, though it remains slightly below historical peaks seen during the 2021-2022 semiconductor boom.
The primary risk to this growth trajectory remains the uneven nature of the broader electronics recovery. While AI-related demand is currently "structural and broad-based," according to the company’s earnings release, the mainstream smartphone and personal computer markets continue to show sluggishness. If the AI investment cycle were to decelerate before a recovery in consumer electronics takes hold, ASMPT could face a period of stagnant growth. Furthermore, the company continues to navigate the financial drag of its discontinued operations, which recorded a net loss of HK$72.6 million in the first quarter, though this was a significant narrowing from the previous period.
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