"MediaTek Inc. shares posted their best week since 2002, as artificial intelligence advances at its client Google help reshape the growth outlook for the Taiwanese chipmaker. The stock rose for a fifth-straight day Friday in Taipei, taking its weekly gain to 22%, on investor enthusiasm over Google's latest Gemini model and AI chip deals. MediaTek has reportedly partnered with the Alphabet Inc. unit on design of tensor processing units, seen as a potential rival to Nvidia Corp. chips in AI applications."
"The shift in focus to inference or how LLMs respond to user queries is putting a spotlight on application-specific integrated circuits such as TPUs. UBS Group AG analysts led by Sunny Lin raised their estimate for MediaTek's sales contribution from TPUs in 2027 to $4 billion from $1.8 billion. The analysts see the chips accounting for 20% of the company's operating profit by 2028, depending on execution by MediaTek and Google, they wrote in a note dated Thursday."
MediaTek shares surged 22% in a week, marking the best weekly performance since 2002, driven by investor enthusiasm around Google's Gemini model and AI chip deals. MediaTek reportedly partnered with Google on designing tensor processing units (TPUs), positioning the company as a potential rival to Nvidia in AI applications. Weak smartphone demand and margin pressure have weighed on MediaTek, but anticipated Google TPU opportunities could offset smartphone headwinds over the longer term. Morgan Stanley upgraded the stock to overweight. UBS raised projected TPU-related sales to $4 billion in 2027 and estimated TPUs could represent about 20% of operating profit by 2028.
Read at www.mercurynews.com
Unable to calculate read time
Collection
[
|
...
]