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MediaTek’s stock rises 40% on AI chip breakthrough

Investors are betting on the Dimensity 9300 chip (Image source: MediaTek Inc.)
Investors are betting on the Dimensity 9300 chip (Image source: MediaTek Inc.)

Strong stock growth for MediaTek has been fueled by rising demand for its chips, especially regarding the “edge AI” technology. Both its US competitor Qualcomm Inc. and the overall semiconductor market are lagging behind.

Taiwanese tech firm MediaTek‘s stock has witnessed a remarkable surge of nearly 40% since late June, outperforming both the broader semiconductor market and its US rival Qualcomm Inc. This impressive performance comes as the demand for mobile devices equipped with MediaTek’s chips, particularly in China, continues to grow.

At the heart of this surge lies MediaTek’s cutting-edge Dimensity 9300 chip, a direct competitor to Qualcomm‘s Snapdragon 8 Gen 3. This innovation has captured investor attention, particularly given the growing emphasis on “edge AI,” a transformative technology poised to dominate investment strategies in 2024.

Specifically designed to address the demanding workloads of next-generation generative AI and gaming applications, the Dimensity 9300 chip represents a significant leap forward compared to previous designs that failed to spark investor enthusiasm. The Chinese smartphone Vivo X100, released this month, is the first to feature the chip, followed by the OPPO Find X7 series.

The stock valuation of MediaTek is currently in line with its five-year average, trading at about 17 times forward estimated earnings. MediaTek is the second-largest listed company in Taiwan, behind only Taiwan Semiconductor Manufacturing Co Ltd (TSMC), with a market capitalization of over US$47 billion.

MediaTek chips power a wide range of smartphones, including the OPPO Find X series. The upcoming Find X7 model is not yet available, but the OPPO Find X5 Dual-SIM (International version) is currently offered on Amazon.

Disclaimer: The information reported here should not be used as a basis for any personal investment decision. Notebookcheck does not offer cryptocurrency, NFT, or other trading, investment, or financial advice.

Robert Gelo, 2023-11-29 (Update: 2023-11-29)

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