MediaTek stock pivots toward AI accelerators after strong Q3

Published on 11/02/2026 at 15:37 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

MediaTek stock enters a new growth phase as AI accelerator demand strengthens. Management expects initial shipments to generate major fourth-quarter revenue.

AI accelerator ramp reshapes growth

MediaTek's third-quarter revenue rose 18.3 percent year over year to TWD 168.1 billion.
Initial shipments of the first AI accelerator began in September, with high-volume production of a second project targeted for the first quarter of 2028.
Management is reducing the company's reliance on smartphones while expanding its position with major cloud providers.

MediaTek, TW0002454006, Illustration mit AI erstellt.

MediaTek is accelerating its move beyond smartphones after reporting strong third-quarter results on Friday, October 30. Revenue reached TWD 168.1 billion, up 18.3 percent from a year earlier, while net income rose 10.8 percent to TWD 28.2 billion, according to Reuters.

AI becomes the next growth engine

Chief Executive Rick Tsai said demand for artificial intelligence will continue to grow, although the pace may vary. MediaTek has begun initial shipments of its first AI accelerator and expects the product to generate 2.5 billion US dollars in fourth-quarter revenue.

The company is also preparing a second AI accelerator project. High-volume production is scheduled for the first quarter of 2028, supporting MediaTek's ambition to become a significant supplier of custom chips for major cloud providers.

Smartphone exposure declines

The strategy reduces MediaTek's reliance on smartphones, a market that has historically been central to its business. The shift toward data-center and custom AI chips could diversify revenue, but it also increases the importance of execution, customer concentration and supply-chain cooperation.

For investors, the next focus is whether initial AI shipments convert into sustained growth and whether the second project reaches production on schedule. MediaTek works closely with TSMC across its technology chain, making manufacturing capacity and product execution important factors for the expansion.