Quick overview

---

MediaTek shares saw their biggest two-day rally on record as investors flocked to the Taiwanese chip designer due to excitement over its partnership with Google.

 

The Taipei-listed stock closed at a new all-time high after rising 8.6 percent on Monday, capping a two-session surge of 19 percent.

Increased awareness of MediaTek’s work on Google’s tensor processing units—chips used in AI applications—led to a two-month rally. Additionally, it illustrates how fund managers had to deal with single-stock restrictions on the market leader, Taiwan Semiconductor Manufacturing are expanding into additional AI-related businesses.

MediaTek has established itself as a leading alternative by switching from its primary smartphone chip business to high-margin custom AI offerings. Charlie Chan and other Morgan Stanley analysts wrote in a note on Friday that “we see large potential” in MediaTek’s AI application-specific integrated circuits. However, Google collaborates with Broadcom Inc. as well. MediaTek might experience further growth in its TPUs.

Along with other well-known tech companies like chipmaker Nanya Technology Corp., MediaTek helped push Taiwan’s benchmark Taiex to a new high on Monday. Additionally, United Microelectronics Corp. TSMC dropped 0.9%.

According to Phelix Lee, a Morningstar analyst, MediaTek’s most recent guidance appears conservative because it only takes into account orders from Google and the outlook as of October. According to him, the market might be hoping that the business will surpass its goals.