MediaTek Shares Surge 174% on Google AI Chip Deal, Adding $130 Billion
Updated
Updated · Bloomberg · Jun 11
MediaTek Shares Surge 174% on Google AI Chip Deal, Adding $130 Billion
2 articles · Updated · Bloomberg · Jun 11
Summary
MediaTek is headed for its best quarter on record after its shares jumped 174% since the end of March, making it one of Asia’s top-performing stocks.
Investor enthusiasm has centered on the Taiwanese chip designer’s push into AI chips, with its agreement to develop application-specific integrated circuits with Alphabet’s Google seen as a new growth driver.
That rally has added more than $130 billion in market value as investors bet the AI business can offset pressure from MediaTek’s older, struggling legacy-chip operations.
The surge signals a broader re-rating of MediaTek from a lagging chipmaker tied to mature technologies into a more credible AI contender.
As MediaTek's AI fortune hinges on Google, can it outmaneuver rival Broadcom to secure its future growth?
MediaTek's AI ambitions are huge, but can it win the silicon war for TSMC's scarce 2nm chips?
MediaTek’s Record-Breaking 19% Surge: Google AI Chip Deal Ignites New Era for Custom Silicon and Taiwan Tech
Overview
In early 2026, MediaTek formed a strategic partnership with Google for AI-related chip offerings, which sparked strong excitement in the market. This led to a dramatic surge in MediaTek’s share price, including a record two-day rally of 19% and an all-time high after an 8.6% jump. The surge was driven by robust investor interest in MediaTek’s AI application-specific integrated circuits (ASICs) and analysts’ optimism about the company’s collaboration with Google. UBS analysts notably raised their revenue projections for MediaTek’s Tensor Processing Unit (TPU) business, highlighting the substantial potential of this partnership.