MediaTek Shares Jump 10% After Nvidia's $3.5 Billion AI Chip Deal

3 articles · Updated · CNBC · Sep 1

MediaTek closed up 10% in Taipei on Tuesday, extending its 2026 share rally to nearly 200% after unveiling a $3.5 billion Nvidia investment tied to an AI chip partnership.
The deal gives MediaTek access to Nvidia's NVLink Fusion, letting the Taiwanese firm build custom AI chips that plug into Nvidia's data-center infrastructure for hyperscalers and other customers.
That strengthens MediaTek's push beyond smartphone processors into data-center silicon, where it is emerging as a challenger to Broadcom while remaining Qualcomm's main rival in mobile chips.
MediaTek said in June its custom AI chip business would generate $2 billion this year, targeting a market it estimates could reach $80 billion by 2027.

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CNBC58d ago

MediaTek Shares Jump 10% After $3.5 Billion Nvidia AI Chip Deal

X59d ago

WOLF on X: "$NVDA INVESTS $3.5B IN MEDIATEK, EXPANDS AI PARTNERSHIP NVIDIA invested $3.5B in MediaTek convertible bonds as the companies expand work across three areas: • AI infrastructure: MediaTek will adopt

theenergymag.com59d ago

Nvidia Backs MediaTek With $3.5B in Expanded AI Chip Pact | TheEnergyMag

13 Sources

Is Nvidia's $3.5 billion investment in MediaTek a brilliant strategy to secretly tax rivals building custom AI chips?

Could MediaTek's adoption of NVLink Fusion lock hyperscalers back into Nvidia's ecosystem despite their efforts to escape GPUs?

With custom AI chips costing up to $1 billion, will Nvidia's infrastructure pivot ultimately monopolize the booming ASIC market?

Nvidia Invests $3.5B in MediaTek: The High-Stakes Race for Custom AI Chips and Rack-Scale Dominance

Overview

In August 2026, Nvidia invested $3.5 billion in MediaTek’s convertible bonds, giving MediaTek capital for expansion without immediate cash strain. This move lets Nvidia hold a safer position while keeping the option to benefit from MediaTek’s growth in custom silicon. As cloud giants build their own chips to reduce reliance on Nvidia, Nvidia responds by integrating its NVLink Fusion platform into MediaTek’s designs, ensuring custom chips still connect to Nvidia’s ecosystem. MediaTek, in turn, can offer faster, prevalidated solutions to hyperscalers. However, both companies remain vulnerable to supply chain disruptions, as they rely on third-party foundries for manufacturing.

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