ASE Technology upgraded to Overweight from Equal Weight at Morgan Stanley

Morgan Stanley upgraded ASE Technology to Overweight from Equal Weight with an NT$180 price target. The firm says the shares are now pricing in the weak recovery of the semiconductor cycle and its slower penetration of Nvidia’s artificial intelligence GPU testing business. It it is time to revisit what ASE can likely deliver in AI chip production, and the potential revenue contribution in 2025 and onwards, the analyst tells investors in a research note. Morgan Stanley believes the stock is oversold.