TAIPEI, September 1, 2026, 11:07 (GMT+8)
- By 10:52 GMT+8, MediaTek shares climbed 9.94% to NT$4,315.
- The NT$616 billion increase in market value represented approximately 5.6 times Nvidia’s investment.
- Nvidia is set to finance 89.7% of MediaTek’s $3.9 billion convertible bond issue.
MediaTek Inc. TPE:2454 surged by the maximum allowed in Taiwan trading on Tuesday, rising NT$390, or 9.94%, to NT$4,315 as of 10:52 GMT+8 Google Finance.
The action increased equity value by approximately NT$616 billion, based on the quoted rise and the 1.58 billion shares outstanding. This figure is about 5.6 times what Nvidia invested, when applying MediaTek’s second-quarter exchange rate.
MediaTek reaches Taiwan’s daily price limit
Share price, New Taiwan dollars
As of . Volume: 3.56 million shares. Source: Google Finance.
Nvidia Corp. NASDAQ:NVDA acquired $3.5 billion in convertible bonds from MediaTek. This accounts for 89.7% of MediaTek’s $3.9 billion international bond issuance, Reuters reported here.
The valuation increase surpasses the size of the financing round. Investors are factoring in broader access to custom data-center silicon, beyond just new capital.
Equity gain dwarfs the financing
Investment and offering translated at MediaTek’s Q2 average of NT$31.60 per U.S. dollar. Market-value gain uses NT$390 and 1.58 billion shares. Sources: Google Finance, MediaTek and Reuters. Calculations are rounded.
The firms further broadened collaboration in cloud infrastructure, PCs, and automotive sectors. MediaTek plans to use Nvidia’s NVLink Fusion platform for its custom accelerators, linking them with Nvidia rack-scale systems company statement.
Nvidia CEO Jensen Huang stated the collaboration would “bring NVIDIA accelerated computing to new markets.” MediaTek CEO Rick Tsai said the investment boosts efforts ranging from cloud infrastructure to automotive systems.
The investment amounts to roughly 56% of MediaTek’s cash and current financial assets as of quarter-end. This figure is also 4.8 times the company’s operating income for the second quarter. Both metrics are calculated with MediaTek’s stated exchange rate Q2 results.
MediaTek’s Q2 revenue mix favors Smart Edge
Quarter ended June 30, 2026. Smart Edge rose 26% year on year; Mobile Phone fell 20%; Power IC rose 6%. Source: MediaTek Q2 transcript.
Smart Edge Platforms accounted for 53% of revenue in the second quarter, marking a 26% increase from the same period last year. Revenue from Mobile Phone dropped 20% and made up 41% of the total.
The split underpins the surge. Nvidia’s ecosystem could accelerate MediaTek’s expansion outside handsets while maintaining its custom-chip position.
MediaTek forecasts its data-center revenue will top $2 billion in 2026. The company plans to begin producing its inaugural AI accelerator ASIC in the fourth quarter. Executives aim for a market share of 15% to 20% of the projected $80 billion serviceable market by 2027 earnings transcript.
Latest earnings provide a tougher comparison. Second-quarter revenue increased by 1.2% to NT$152.2 billion. Operating income dropped 22.2%, and gross margin slipped 2.9 points to 46.2%.
The upcoming update is August revenue, set for release on September 10 at 17:00 GMT+8 MediaTek investor calendar. MediaTek’s third-quarter outlook projects sales between NT$152.2 billion and NT$159.8 billion.
Risks: MediaTek has yet to reveal conversion pricing in its partnership announcement. Shareholder dilution may occur if conversion happens in the future. Weakness in smartphones, shrinking margins, or postponed AI-chip output could further pressure the premium.
Tuesday’s limit-up rally indicates considerable execution ahead of the data release. The bond offering raises significant capital. The suggested operating potential is even greater.
