Macquarie Backs MediaTek's ASIC and AI Push With NT$10,000 Price Target

MediaTek is broadening its business beyond smartphone chips as cloud and edge artificial intelligence create new demand for application-specific integrated circuits. The expansion matters because successful AI ASIC programs could diversify revenue and strengthen the Taiwanese chip designer’s position across computing, connectivity and power-efficient silicon, supporting its evolution into a more comprehensive AI platform supplier.

MediaTek’s second-quarter results beat market expectations, helped by robust demand for cloud and edge AI ASIC products. Its first AI ASIC remains scheduled to enter mass production in the fourth quarter of 2026. Citi reiterated its Buy rating, saying the company is becoming a full-spectrum AI silicon platform provider, and sharply raised its price target to NT$6,800.

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.

MediaTek has long focused on smartphone chips but has moved aggressively into custom AI accelerator ASICs developed by cloud providers. The market expects the company to secure a major Google order, with its first project already in mass production and forecast to generate $2 billion in revenue in 2026, providing an important growth engine beyond its handset business.

Optimism over AI ASICs drove MediaTek shares higher for several consecutive sessions, with the stock at one point opening limit-up at NT$2,870 per share, a record high. The company also forecast that the related market could reach $80 billion in 2027. The Taiwan Stock Exchange subsequently placed the shares under trading restrictions after their rapid gains, and the stock fell nearly 4% at one point after the open.

MediaTek has traditionally relied on smartphone chips for most of its revenue, leaving growth and profitability vulnerable when market demand weakens. AI ASICs are custom chips designed for specific artificial-intelligence workloads. Goldman Sachs believes the business could become a major engine for MediaTek to diversify away from smartphone-market risks and expand its long-term earnings.

In its latest research report, Goldman Sachs said it expects strong growth in MediaTek’s AI ASIC business and forecast that the segment’s share of revenue will rise to 39% by 2027. Despite continued near-term pressure from the weak smartphone market, the bank sharply raised its MediaTek price target to NT$2,454, citing the AI business’s long-term earnings potential.