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MediaTek Gains Bullish Support from 8 Brokerages; UBS Speculates on New ASIC Client
Electronic Technology · Semiconductors · economic_daily · 2026-11-02
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Following a strong earnings report, eight major brokerages raised their price targets for MediaTek, with UBS identifying Tesla or SpaceX/xAI as potential candidates for its new cloud ASIC partnership.
What Happened
Strong Earnings and Outlook: MediaTek's latest earnings call exceeded market expectations, leading the company to raise its 2024 TPU revenue forecast to $2.5 billion. Management also reaffirmed that the TPU v9 project remains on track for mass production in Q1 2028, dispelling concerns regarding potential delays.
Broad Analyst Optimism: Eight major financial institutions, including UBS, Goldman Sachs, and Citi, have raised their price targets for MediaTek. UBS remains the most bullish with a target price of NT$7,300, citing that the company's execution in the cloud AI sector remains significantly undervalued by the market.
Speculation on New Client: MediaTek confirmed securing a second non-Chinese cloud ASIC client, with revenue contributions expected to begin in 2028. UBS analysts suggest the client could be Tesla for its AI6 project or SpaceX/xAI for the Dojo3 platform, both of which represent substantial long-term revenue opportunities.
Earnings Forecast Upgrades: Driven by robust momentum in the AI ASIC segment, analysts have revised their EPS projections for MediaTek through 2028. The consensus among major firms is that the addition of a new cloud partner will significantly bolster MediaTek's strategic positioning and growth trajectory in the AI hardware market.