Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

Zero One

Founded in 2015, Zero One produces independent investment research and provides corporate finance advisory services with a focus on both listed and private technology companies. Founder Vincent Fernando has over 20 years of experience in US and Asia capital markets.

Independent Investment Research

Equity Bottom-Up

<ul>
<li>Mediatek is advancing full speed with recent industry collaborations for automotive chips, data center connectivity solutions, and AI memory solutions.</li>
<li>In particular, the company has entered the market for Co-Packaged Optics (CPO), with partnerships announced with Foxconn and Ranovus.</li>
<li>While the stock has rallied and re-rated, consensus forward estimates do not appear overly demanding and could still have room to increase further.</li>
</ul>


Mediatek is advancing full speed with recent industry collaborations for automotive chips, data center connectivity solutions, and AI memory solutions.
In particular, the company has entered the market for Co-Packaged Optics (CPO), with partnerships announced with Foxconn and Ranovus.
While the stock has rallied and re-rated, consensus forward estimates do not appear overly demanding and could still have room to increase further.


Mediatek: Accelerating Momentum in Automotive, Data Center, and AI Memory Solutions

Taiwan Tech Focused Senior Analyst

Patrick Liao

<ul>
<li>
<a href="https://www.smartkarma.com/entities/mediatek-inc" target="_blank" data-smartkarma-citation="entities:772:1" rel="noopener">Mediatek Inc (2454 TT)</a> Dimensity 9400 is expected to be released in September 2024F.  </li>
<li>Artificial Intelligence (AI) is a trending topic, and MediaTek is adapting by emphasizing Generative AI functionality in its Dimensity 9300 and 9400 smartphone models.  </li>
<li>The smartphone market is expected to recover in 2024F, with MediaTek's revenue in the second quarter potentially surpassing the first quarter.</li>
</ul>



Mediatek Inc (2454 TT) Dimensity 9400 is expected to be released in September 2024F.  
Artificial Intelligence (AI) is a trending topic, and MediaTek is adapting by emphasizing Generative AI functionality in its Dimensity 9300 and 9400 smartphone models.  
The smartphone market is expected to recover in 2024F, with MediaTek's revenue in the second quarter potentially surpassing the first quarter.


MediaTek (2454.TT): Dimensity 9400 Unveiled in Sep; 2Q24F Sales Could Be a Bit Higher than 1Q24F.

<ul>
<li>Mediatek's results for 4Q23 exceeded expectations; Forward guidance also suggests that consensus forecasts for 2024 may need to be revised upward.</li>
<li>Foresees the start of its "next growth phase" in 2024, with AI influencing mobile upgrades and the introduction of new products in late 2025, indicating potential growth through 2026E.</li>
<li>Mediatek indicated that AI interest will drive high-end mobile devices to gain market share in 2024E.</li>
</ul>


Mediatek's results for 4Q23 exceeded expectations; Forward guidance also suggests that consensus forecasts for 2024 may need to be revised upward.
Foresees the start of its "next growth phase" in 2024, with AI influencing mobile upgrades and the introduction of new products in late 2025, indicating potential growth through 2026E.
Mediatek indicated that AI interest will drive high-end mobile devices to gain market share in 2024E.


Mediatek Results Take-Aways: High-End Devices to Take Market Share Globally; Upward Revisions Likely

<ul>
<li>MediaTek expects a reduced DOI level in 2024F while maintaining operating expenses and pricing discipline in 2023.</li>
<li>The upgrade cycle has begun for devices equipped with AI functions. The Dimensity 9300 is just the first edge AI product for smartphones. </li>
<li>MediaTek does not predict a significant increase in demand and expects a steady demand for smartphones. </li>
</ul>


MediaTek expects a reduced DOI level in 2024F while maintaining operating expenses and pricing discipline in 2023.
The upgrade cycle has begun for devices equipped with AI functions. The Dimensity 9300 is just the first edge AI product for smartphones. 
MediaTek does not predict a significant increase in demand and expects a steady demand for smartphones. 


MediaTek (2454.TT): 2024F Indicating a Complete Recovery from the Previous Downturn Situation.

<ul>
<li>The WiFi technology was dominated by <a href="https://www.smartkarma.com/entities/broadcom-corp-cl-a" target="_blank" data-smartkarma-citation="entities:999:1" rel="noopener">Broadcom Corp Cl A (BRCM US)</a>, but <a href="https://www.smartkarma.com/entities/mediatek-inc" target="_blank" data-smartkarma-citation="entities:772:1" rel="noopener">Mediatek Inc (2454 TT)</a> has to break into the PC and smartphone markets in 2024F.</li>
<li>There are speculations that Apple might use MediaTek's WiFi 7 solution in 2024F or consider MediaTek as a potential chip provider.</li>
<li>MediaTek will be using 6nm technology for WiFi 7, replacing the current 28nm technology used for WiFi 6.</li>
</ul>


The WiFi technology was dominated by Broadcom Corp Cl A (BRCM US), but Mediatek Inc (2454 TT) has to break into the PC and smartphone markets in 2024F.
There are speculations that Apple might use MediaTek's WiFi 7 solution in 2024F or consider MediaTek as a potential chip provider.
MediaTek will be using 6nm technology for WiFi 7, replacing the current 28nm technology used for WiFi 6.


MediaTek (2454.TT): The WiFi 7 Chip Competition Is Likely to Become Fierce in 2024.

Taiwan

MediaTek Inc. is a fabless semiconductor company for wireless communications and digital multimedia solutions. The company provides SOC system solutions for wireless communications, high-definition TV, optical storage, DVD and Blu-ray products.

Mediatek Inc (2454 TT)

Mediatek: Accelerating Momentum in Automotive, Data Center, and AI Memory Solutions

Mediatek is expanding rapidly with collaborations in automotive, data center, and AI, including new partnerships for Co-Packaged Optics,...

Vincent Fernando, CFA

MediaTek (2454.TT): Dimensity 9400 Unveiled in Sep; 2Q24F Sales Could Be a Bit Higher than 1Q24F.

Dimensity 9400 is expected to be released in September 2024F. Generative AI in its Dimensity 9300 and 9400. MediaTek's revenue in the second...

Patrick Liao

MediaTek (2454.TT): 2024F Indicating a Complete Recovery from the Previous Downturn Situation.

MediaTek anticipates lower DOI in 2024 but maintains pricing discipline and operating expenses. The D9300 marks the start of the AI upgrade cycle...

Patrick Liao

MediaTek (2454.TT): The WiFi 7 Chip Competition Is Likely to Become Fierce in 2024.

Mediatek Inc (2454 TT) has to break into the PC and smartphone markets in 2024F. In 2024, MediaTek aims to potentially supplying WiFi 7 chips to...

Patrick Liao

Mediatek: Accelerating Momentum in Automotive, Data Center, and AI Memory Solutions

​Mediatek is expanding rapidly with collaborations in automotive, data center, and AI, including new partnerships for Co-Packaged Optics,...

Vincent Fernando, CFA

MediaTek (2454.TT): Dimensity 9400 Unveiled in Sep; 2Q24F Sales Could Be a Bit Higher than 1Q24F.

Dimensity 9400 is expected to be released in September 2024F. Generative AI in its Dimensity 9300 and 9400. MediaTek's revenue in the second...

Patrick Liao

Mediatek Results Take-Aways: High-End Devices to Take Market Share Globally; Upward Revisions Likely

​Mediatek's strong 4Q23 results and positive forward guidance indicate potential growth visibility through 2026E, driven by AI and new product...

Vincent Fernando, CFA

MediaTek (2454.TT): 2024F Indicating a Complete Recovery from the Previous Downturn Situation.

​MediaTek anticipates lower DOI in 2024 but maintains pricing discipline and operating expenses. The D9300 marks the start of the AI upgrade cycle...

Patrick Liao

MediaTek (2454.TT): The WiFi 7 Chip Competition Is Likely to Become Fierce in 2024.

Mediatek Inc (2454 TT) has to break into the PC and smartphone markets in 2024F. ​In 2024, MediaTek aims to potentially supplying WiFi 7 chips to...

Patrick Liao

Mediatek is expanding rapidly with collaborations in automotive, data center, and AI, including new partnerships for Co-Packaged Optics,...

Mediatek's strong 4Q23 results and positive forward guidance indicate potential growth visibility through 2026E, driven by AI and new product...

MediaTek anticipates lower DOI in 2024 but maintains pricing discipline and operating expenses. The D9300 marks the start of the AI upgrade cycle...

Mediatek Inc (2454 TT) has to break into the PC and smartphone markets in 2024F. In 2024, MediaTek aims to potentially supplying WiFi 7 chips to...