MediaTek Inc
2454: XTAI (TWN)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
TWD 9,333.00 | Ttxxwz | Cccfxvgdj |
MediaTek Earnings: AI and Automotive Become Two New Drivers As Smartphone Recovery Stays Slow
Our MediaTek fair value estimate sheds 4% to TWD 1,400 per share after factoring in a weaker second-half 2023 outlook for all segments. We find MediaTek undervalued for its continued ability to defend prices and its automotive partnership with Nvidia slightly improves visibility of long-term growth. Smartphones are showing signs of recovery and could support the share price for the short term, and we observe the first mentions of automotive revenue improving sentiment for the company. The key upside to our forecasts is MediaTek selling more mobile chips due to demand induced by artificial intelligence, or AI, computing, and a potential business model of offloading computations from cloud providers.