Mediatek (2454.TW): Raising AI ASIC revenue for 2027

Research evidence excerpt

Mediatek (2454.TW): Raising AI ASIC revenue for 2027

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31 Jul 2026 10:08:41 ET │ 17 pages

Mediatek (2454.TW)

Raising AI ASIC revenue for 2027

CITI'S TAKE

MediaTek’s 2Q26 result was better than market expectation with stable

GM/OPM at 46.2% and 15%. The key highlight remained on AI, where

MediaTek sees growing demand from both cloud AI infrastructure and Buy

Agentic AI at the edge. Production of its first AI ASIC is on track for 4Q26, Short-Term View: Upside

with company expecting its 2026 AI data center revenue to exceed US$2bn.

Price (31 Jul 26 13:30) NT$3,555.00Management expects AI data center revenue to continue scaling

substantially in 2027, supported by stronger customer demand. Reflecting Target price NT$6,800.00↑

this confidence, the company raised its 2027 AI ASIC TAM to US$80bn and from NT$6,055.00increased its target market share to 15–20% from 10–15%, implying US$12-

16bn revenue (vs our estimate of US$18bn) reinforcing AI ASIC as one of Expected share price 91.3%MediaTek’s most important long-term growth drivers. Maintain Buy. return

Expected dividend yield 1.5%

Sustainable and scalable AI revenue growth — Mediatek’s first AI accelerator Expected total return 92.8%remains on track for production in 4Q26, while the second-generation continues

progressing smoothly toward high-volume production in 2028 alongside improving Market Cap NT$5,701,848M

advanced packaging yields and supply chain readiness. Management highlighted US$175,967M

that it is now engaged with several additional data center ASIC customers,

demonstrating a broader pipeline beyond its initial project. It emphasized that

execution excellence, close collaboration with customers and supply chain partners,

and technology leadership remain its primary competitive advantages.