MediaTek, the Taiwanese semiconductor firm, is set to gain significant financial advantages from its partnership with Nvidia, starting in 2026, according to Bernstein’s analysts. The collaboration involves MediaTek’s role in designing the Grace Blackwell 10 (GB10) chip, which powers Nvidia’s Project DIGITS, a desktop supercomputer for AI researchers and data scientists, launching in May 2023 at a starting price of $3,000. Analysts believe MediaTek’s contributions will result in a gradual increase in design implementation and volume growth, with notable benefits anticipated in 2026. The CPU die from MediaTek is noted to have a large size, and it is expected to be manufactured using TSMC’s advanced N3 process technology by late 2024. Bernstein maintains a bullish outlook on MediaTek, projecting a 20% revenue increase and a 30% rise in earnings per share for 2026, despite not raising its price target, which stands at 1,680 New Taiwan dollars ($51.1). Currently, MediaTek shares are priced at 1,470 New Taiwan dollars, suggesting a 14% upside. The collaboration marks a pivotal move for MediaTek as it seeks to expand beyond its core smartphone chip market and tap into the growing AI sector.
