Key insights
- Morgan Stanley reiterates MediaTek as a top pick due to its strong position in cloud AI ASIC design and edge AI. The company's strategy to add value through technology, particularly in Google's TPU projects, suggests multi-year growth potential through 2030. MediaTek's participation in PC and server CPU opportunities, alongside potential new cloud customers, indicates upside beyond current consensus, positively influencing the semiconductor sector and related AI infrastructure.
Investing.com - Morgan Stanley maintains MediaTek (TPE:2454) as its top pick, citing the company's technology and execution in cloud AI ASIC design services and edge AI potential. The firm shared takeaways from its Taiwan AI Summit 2026, where MediaTek executives outlined the company's cloud-to-edge AI semiconductor strategy.
MediaTek co-COO and CFO David Ku said on May 25, 2026 the company plans to avoid ASIC commoditization under the customer-owned tooling trend by adding customer value and differentiating through technology. Management said cloud AI ASIC operating margin can stay above the corporate average. The company clarified its system integration for Google TPU uses chiplet and interconnect technology, not rack systems or networking design.
MediaTek secured a 2nm ASIC project, expected to be TPU v9, and is bidding for the next-generation project. Morgan Stanley sees multi-year growth through 2030 based on revenue contribution from what it believes will be TPU v10 IceFish in 2029 and 2030. The company said it has received several cloud service provider requests for quotation and hopes to add one more customer besides Google by end-2026.
For agentic AI compute, MediaTek plans to participate in PC and server CPU opportunities through merchant or ASIC design services. The company said major ASIC designs are not limited to either training or inference purposes, leading Morgan Stanley to see volume upside for MediaTek's TPU v8 and v9 versus Street consensus.
MediaTek said future growth is in addition to smartphones, which should continue growing with edge compute. The company does not rule out AI service providers approaching MediaTek for future AI phones given its turnkey capability. Management sees growth potential in automotive.