MediaTek CEO Rick Tsai (right) and Nvidia CEO Jensen Huang (left) speak during the keynote speech at Computex 2025 held at the Taipei Nangang Exhibition Hall in Taipei, May 20, 2025.
Chen Yihua | AFP | Getty Images
shares of media tech Shares closed 10% higher on Tuesday after the Taiwanese semiconductor company announced a partnership with China. Nvidiawill strengthen its expansion into the data center market.
Nvidia invested $3.5 billion in convertible bonds issued by MediaTek as part of the deal, the companies announced Monday, spurring a nearly 200% rise in the Taiwanese company’s stock price this year.
According to Counterpoint Research, MediaTek is the world’s largest smartphone chip company by market share and the main rival of the US giant. Qualcomm. But MediaTek has recently been looking to diversify by designing custom chips for data centers.
Hyperscalers and other technology companies are increasingly building custom chips to run AI workloads. MediaTek is emerging as a player who can build these, posing potential challenges. broadcommarket leader.
MediaTek’s year-to-date stock price.
The partnership will see MediaTek offer Nvidia’s NVLink Fusion platform to customers developing custom AI chips. This means that custom semiconductors produced by MediaTek can be integrated with Nvidia’s AI infrastructure and systems.
NVLink Fusion is part of Nvidia’s strategy to remain at the center of its AI infrastructure even as companies move toward using their own chips to run certain AI processes.
The two companies will also collaborate on “local AI computing,” or chips designed for PCs and systems for cars.
MediaTek announced in June that its custom AI chip business will generate $2 billion in revenue this year and could reach a total addressable market of up to $80 billion by 2027.
CNBC contacted MediaTek to ask if its guidance has changed due to the deal with Nvidia.
In a press release issued Monday, NVIDIA CEO Jensen Huang called MediaTek “one of the world’s great semiconductor companies.”
