MediaTek's AI Ambitions Get Lift from Nvidia, Alphabet Backing
Dow Jones
4 hours ago
0336 GMT - MediaTek's push into custom AI chips could gain momentum after Nvidia and Alphabet backed its $3.9 billion convertible bond sale, strengthening a partnership that Morgan Stanley analysts say may help the Taiwanese company win additional customers. Morgan Stanley says the deeper alliance strengthens MediaTek's position in AI infrastructure and could improve its chances of winning a second or even third cloud-service provider as a customer for its custom-chip business. That could provide upside to the company's long-term AI revenue outlook. The brokerage maintains its overweight rating on MediaTek and says the company could also benefit from a closer relationship with Alphabet on AI chip development.
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