Key insights
- MediaTek's stock saw a notable increase following an analyst report suggesting a significant exclusive contract with Google for an upgraded AI TPU chip. While this signals strong AI demand benefiting MediaTek, competing analyst views from Jefferies suggest Broadcom may maintain an edge in future chip generations for Alphabet. The news comes amidst broader tech sector headwinds and specific challenges for Alphabet, creating a mixed outlook for related semiconductor stocks.
Investing.com -- MediaTek stock rose 2.9% to T$4,595.0 on Tuesday after a well-regarded analyst said the chipmaker had secured a major new contract with Google.
KGI Securities Analyst Ming-Chi Kuo-- who is famous for their coverage of Apple and the tech supply chain-- reported that Google is developing an upgraded TPU v9 revision chip — potentially codenamed "Triggerfish" — with MediaTek securing the exclusive order for this higher-priced, more advanced accelerator.
While the contract was yet to be confirmed, it represents a major win for Mediatek, as the chipmaker continues to benefit from outsized artificial intelligence demand.
Still, Jefferies analysts argued that Broadcom retains a competitive edge over MediaTek in supplying Alphabet’s next two major chip generations, casting some doubt on how dominant MediaTek’s role in the Google AI supply chain will ultimately be.
On the broader market front, global technology stocks faced headwinds this week, with the NASDAQ declining 1.3% and the S&P 500 slipping 0.4% overnight. Alphabet slid nearly 5% after two high-profile AI executives left the company over the past week.
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