Morgan Stanley Backs MediaTek’s 2-Nanometer TPU, Raises Price Target to NT$5,088
MediaTek is working with Intel and Google to develop a 2-nanometer TPU, expanding into design services for AI accelerators built on advanced processes. The initiative could help MediaTek move beyond consumer chips into cloud and edge AI, giving investors more direct exposure to growth in Google’s TPU business.
As of July 20, 2026, Morgan Stanley’s latest report was upbeat about the design performance of MediaTek’s 2-nanometer TPU and subsequent shipment growth. The bank expects strong AI demand to boost related revenue and raised its price target on MediaTek to NT$5,088.
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The history behind this eventMacquarie Backs MediaTek's ASIC and AI Push With NT$10,000 Price Target
MediaTek has long focused on smartphone chips but has expanded into custom AI chips, or ASICs, and projects for cloud service providers in recent years as it seeks a second growth engine. With smartphone demand and its 5G business under pressure, the company's ability to grow ASIC revenue and improve profitability has become critical to a valuation upgrade.
Macquarie Securities sharply raised its MediaTek price target to NT$10,000 from NT$5,850 on June 29, 2026. It forecasts ASIC revenue could reach $40 billion in 2028, up from its previous estimate of $18 billion, and raised its earnings-per-share forecast for that year by 71%. However, it cut its 2026 and 2027 forecasts by 16% and 11%, respectively.
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