MediaTek shares rose 8.6% on January 26, closing at a record high after a two-day gain of 19%, driven by news of its collaboration with Google on AI chips.

The surge reflects growing investor interest in its work on tensor processing units (TPUs) for AI applications.

The rally came as Taiwan’s Taiex index also hit a new high, supported by other tech stocks, while TSMC shares slipped 0.9%.

Morgan Stanley analysts said MediaTek’s focus on AI-specific chips, including custom solutions, could open new growth opportunities as it shifts resources from its smartphone chip business.

They added that the company’s latest guidance is based on October data and only includes Google orders, suggesting MediaTek could outperform its current projections.

🔗 Source: Bloomberg

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