MediaTek’s share price has risen sharply in a short period of time, partly due to increasing attention to the company’s role in Google’s AI strategy. In two trading days, the share price rose by approximately 19 percent. This brought the Taiwanese chip designer to a new record high on the Taipei stock exchange.
The jump in share price follows a period of sustained optimism among investors. For several months now, there has been a growing awareness that MediaTek is involved in the development of Tensor Processing Units for Google, specialized chips used for artificial intelligence. The rise was reinforced by a strong price gain on Monday, extending the rally of the past two months, Bloomberg reports.
MediaTek is also benefiting from a broader shift in the market. Large investors are actively seeking alternatives within the AI ecosystem, partly because their positions in dominant players such as TSMC are subject to maximum weightings. By increasingly focusing on custom AI chips with higher margins, MediaTek is visibly shifting away from its traditional dependence on smartphone processors, which have been the core of the company for years.
More growth potential in custom AI chips
Analysts see particular opportunities in the application-specific AI chips developed by MediaTek. According to market experts, the company can create additional growth opportunities by deploying resources previously intended for mobile platforms for data center and cloud-oriented AI hardware. This remains true even now that Google is also collaborating with other chip designers.
MediaTek’s rise also had an impact on the broader Taiwanese stock market. The Taiex index reached a new high, supported by several technology companies. Other semiconductor companies also contributed to the positive market sentiment. Only TSMC lost ground slightly.
At the same time, some analysts point out that MediaTek’s current outlook is cautious. Expectations are based on older assumptions and only take existing orders into account, leading investors to speculate on better-than-expected results in coming quarters.