JPMorgan Chase stated that MediaTek's custom AI chip business is expected to maintain strong growth beyond 2028. Despite increasing competition from other chip design partners, the business is poised for continued expansion as MediaTek's involvement in Google's AI Accelerator program grows. JPMorgan believes market concerns about MediaTek's position in Google's AI chip supply chain are exaggerated and anticipates that MediaTek will remain a key partner for Google in future generations of chips. MediaTek's capabilities in connectivity, interconnect, and system-on-a-chip design will support its continued participation in these projects. JPMorgan raised its earnings forecasts for MediaTek in 2027 and 2028, and increased its June 2027 target price from NT$5,300 to NT$5,600, citing a more optimistic long-term growth outlook for MediaTek's custom AI chip business and its potential to generate stronger operating leverage.
