MediaTek Raises AI ASIC Market Share Target, Stock Hits Upper Limit for Second Day

IC design giant MediaTek (2454) has boosted its market share target for its AI ASIC (custom chip) business. The company's first AI accelerator ASIC is slated for mass production in the fourth quarter of this year. Data center-related revenue is expected to surpass $2 billion this year, with the addressable market for this segment projected to reach $80 billion next year. MediaTek has raised its market share goal from 10%-15% to 15%-20%. The company anticipates accelerated growth in data center revenue next year. Both domestic and international financial institutions are bullish on MediaTek's prospects, with several raising their target prices. The stock opened at its upper limit on Monday and, after a brief dip due to profit-taking, climbed back to its upper limit for a second consecutive day. As of 9:25 AM, MediaTek was trading at its upper limit of 3910 yuan, with over 5,905 shares traded and more than 3,700 shares on the buy side at the upper limit. A U.S.-based foreign investment firm noted that MediaTek's AI ASIC revenue forecast for this year has been raised to over $2 billion, and for next year, it has been increased to $12 to $16 billion. The firm expects both the first and second projects to contribute significant revenue in the year after next, further expanding market share and leading to substantial profit growth in the next two years.

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MediaTek's AI ASIC revenue forecast for this year has been raised to over $2 billion, and for next year, it has been increased to $12 to $16 billion. The firm expects both the first and second projects to contribute significant revenue in the year after next, further expanding market share and leading to substantial profit growth in the next two years.