MediaTek Hits Record NT$2,870 as Optimism Over AI ASICs Sends Shares Limit-Up
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.
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The history behind this eventCiti Lifts MediaTek Target to NT$6,800 on AI ASIC Demand
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.
Macquarie 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.
MediaTek Hits Limit-Up on AI ASIC Buzz, Lifting Taiwan Stocks to Record High
MediaTek is a major semiconductor heavyweight in Taiwan. In recent years, it has expanded beyond mobile chips into artificial intelligence application-specific integrated circuits, or ASICs. Growing optimism over the business has lifted MediaTek’s valuation and, given its index weighting, helped drive the Taiwan Stock Exchange Capitalization Weighted Stock Index higher.
On July 20, 2026, MediaTek shares gapped up to hit the daily limit, reaching a record NT$3,155 apiece. Gains in MediaTek and other heavyweight stocks pushed the benchmark index up 179 points to close at 40,885, setting another all-time high.
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