MediaTek stock gains as AI accelerator demand stays strong

MediaTek said demand for its first artificial intelligence accelerator remains strong after initial shipments began in September. The statement followed the company's October 30 earnings call and was reported by Investing.com.

Chief Executive Rick Tsai said AI demand should continue to grow, although the pace may vary. MediaTek expects its first accelerator to generate USD 2.5 billion in revenue during the fourth quarter.

AI becomes a larger growth driver

MediaTek reported third-quarter revenue of 168.1 billion TWD, up 18.3 percent from a year earlier. Net income rose 10.8 percent to 28.2 billion TWD, according to the report.

The company is working to reduce its reliance on smartphones and expand its position in custom AI chips for cloud providers. That strategy gives investors a second growth engine to monitor alongside the established mobile-chip business, while execution and production timing remain central to the outlook.

Second accelerator targets 2028

High-volume production of MediaTek's second AI accelerator project is on track for the first quarter of 2028. The company is therefore building an AI pipeline that extends beyond the initial product ramp and into later production cycles.