Taiwanese semiconductor company MediaTek is working with Nvidia to develop small artificial intelligence supercomputers, and the partnership is expected to bring huge economic benefits starting in 2026, Bernstein said. The project, announced by Nvidia at this week’s CES electronics show, involves MediaTek’s contribution to the design of the Grace Blackwell 10 (GB10) chip that powers Nvidia’s Project DIGITS – a platform for artificial intelligence researchers and data Desktop supercomputer for scientists. The system will start at $3,000 and is scheduled to be launched in May of this year. “As a result, we expect design cycles and volumes to be more gradual, potentially delivering more significant benefits to MediaTek through 2026,” Bernstein analysts led by Mark Li said in a note to clients on January 8. From Nvidia Looking at the pictures shown, we noticed that the CPU (Central Processing Unit) chip provided by MediaTek has a fairly large die size,” the analyst added. “We believe it is based on N3 and has been supplied to TSMC in late 2024. MediaTek shares trade over the counter in the United States, while TSMC is listed on the New York Stock Exchange. Despite the new product launch, Bernstein analysts did not raise their price targets and continued to expect MediaTek’s growth to accelerate significantly in 2026, forecasting. “Revenue will grow by 20% and (earnings per share) will grow by 30%.” Bernstein maintains an “outperform” rating on MediaTek’s stock, with a target price of NT$1,680 (US$51.1), noting a 14% upside potential from the current stock price of NT$1,470. Analysts warned that their profit forecast for 2026 was already 10% higher than consensus estimates, even without taking into account potential additional revenue from MediaTek’s cooperation with Nvidia on automotive and PC projects. MediaTek’s participation in Nvidia’s DIGITS project represents an important step in the company’s expansion beyond its traditional smartphone chip business, allowing it to take advantage of growing demand for artificial intelligence. —CNBC’s Michael Bloom contributed reporting.
Taiwanese chip supplier behind Nvidia’s tiny supercomputer to benefit in 2026 | Real Time Headlines
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