Shares of MediaTek closed 10% higher on Tuesday, a day after Nvidia announced a $3.5 billion investment in the Taiwanese chipmaker’s convertible bonds as part of a broader partnership aimed at data center and AI computing.
The deal, announced Monday, adds fuel to a nearly 200% rally in MediaTek’s stock this year, according to a CNBC report. MediaTek, the world’s largest smartphone chip company by market share, according to Counterpoint Research, has been working to diversify beyond mobile into designing custom chips for data centers.
Custom AI chips and the challenge to Broadcom
The partnership will let MediaTek offer Nvidia’s NVLink Fusion platform to customers developing custom AI chips, meaning the semiconductors MediaTek builds can be integrated seamlessly with Nvidia’s AI infrastructure and systems. NVLink Fusion is part of Nvidia’s strategy to remain central to AI infrastructure even as hyperscalers and other tech companies increasingly build their own custom silicon for AI workloads.
MediaTek is emerging as a player capable of building these custom chips, potentially challenging Broadcom, a market leader in the space. The companies said they will also collaborate on “local AI computing,” which includes chips for PCs and systems for cars.
Guidance unchanged for now
In June, MediaTek said its custom AI chip business would generate $2 billion in revenue this year, with a total addressable market of up to $80 billion by 2027. CNBC said it reached out to MediaTek to ask whether the Nvidia deal has changed that guidance.
In a press release on Monday, Nvidia CEO Jensen Huang called MediaTek “one of the world’s great semiconductor companies.”
The investment underscores Nvidia’s push to tie its AI ecosystem to a wider range of partners, even as some of its largest customers develop in-house chips for certain AI tasks.
Source: www.cnbc.com — https://www.cnbc.com/2026/09/01/nvidia-deal-mediatek-shares.html
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