MediaTek jumps on record rally after Google AI chip partnership

The rally extended a broader two-month climb that has carried MediaTek to fresh all-time highs, as markets reprice the company from a handset-focused supplier toward an application-specific integrated circuit (ASIC) partner for large cloud customers. The Google project centers on TPUs, chips designed to accelerate artificial-intelligence workloads in data centers, and positions MediaTek alongside established custom-chip providers serving hyperscalers.

MediaTek’s involvement with Google’s TPUs represents a strategic pivot into AI accelerators, an area dominated so far by a small group of specialized designers. Google has historically relied on Broadcom as a key TPU partner, and the addition of MediaTek signals that the tech giant is broadening its supplier base as demand for AI compute continues to rise. For MediaTek, the move opens a path to higher-margin data-center silicon and diversifies revenue away from consumer electronics.

Market records expectations that custom AI chips could become a meaningful growth driver. While MediaTek built its scale on mobile processors, investors are now focusing on its ability to design ASICs tailored to hyperscaler needs, a segment benefiting from sustained capital spending on artificial intelligence infrastructure.

The development also has implications across the semiconductor supply chain. Any ramp in Google TPUs designed by MediaTek would feed directly into foundry demand at Taiwan Semiconductor Manufacturing Co., which fabricates most leading-edge AI chips, while advanced packaging providers stand to benefit as large accelerators increasingly rely on complex chiplet and high-bandwidth memory integration. More broadly, the partnership underscores how cloud companies’ AI capital expenditures are translating into fresh workloads for designers, foundries and backend manufacturing.

MediaTek has not detailed production timelines or volumes for the Google program, but the market response highlights how quickly sentiment can shift when chipmakers secure footholds in data-center AI. With Google expanding its TPU ecosystem and adding partners alongside Broadcom, investors are now watching whether MediaTek can convert the design win into sustained revenue as hyperscalers continue to scale their AI infrastructure.