MediaTek shares rise as CEO flags strong AI-fueled chip demand

Shares of Taiwan's MediaTek Inc (TW:2454) climbed on Monday after its chief executive expressed optimism about the surge in artificial intelligence demand. CEO Rick Tsai stated that the growth for AI would persist, albeit at varying speeds, during a post-earnings call on Friday. Tsai highlighted that the company's initial shipments of its first AI accelerator were off to a strong start, with revenue from these chips expected to reach $2.5 billion in the fourth quarter.

Plans for the production of MediaTek's second AI accelerator are on track for launch in the first quarter of 2028. As Taiwan's largest chip designer, MediaTek reported a strong third-quarter revenue of T168.1 billion ($5.16 billion), marking an 18.3% increase from the previous year. Net income also grew by 10.8% year-on-year to T$28.2 billion.

The company is actively reducing its dependence on smartphones and is aiming to become a key supplier of custom AI chips to major cloud providers. MediaTek, a customer of the world's leading contract chipmaker TSMC, holds the second-largest valuation among companies listed on the Taiwan stock exchange, with a market capitalization of $200 billion.