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>GB10 Brings Nvidia AI Performance From Data Center to the Desktop</li>
<li>GB10 PCs Will Be "True" AI PCs, Their Capabilities Will Be More Evident</li>
<li>From Niche to Market Driver; Maintain Structural Long for Mediatek, Asustek, Acer</li>
</ul>


GB10 Brings Nvidia AI Performance From Data Center to the Desktop
GB10 PCs Will Be "True" AI PCs, Their Capabilities Will Be More Evident
From Niche to Market Driver; Maintain Structural Long for Mediatek, Asustek, Acer


PC Monitor: Nvidia GB10 PCs Poised to Redefine the AI PC Category

<ul>
<li>Starlink’s Direct-to-Phone Semiconductor Integration Push Signals a Major Shift Coming for Telecom</li>
<li>Direct-To-Satellite Connectivity Could Become Critical for a Market-Competitive Smartphone SoC Design</li>
<li>Leadership in Satellite Connectivity Will Soon Mean Leadership in Smartphone SoCs</li>
</ul>


Starlink’s Direct-to-Phone Semiconductor Integration Push Signals a Major Shift Coming for Telecom
Direct-To-Satellite Connectivity Could Become Critical for a Market-Competitive Smartphone SoC Design
Leadership in Satellite Connectivity Will Soon Mean Leadership in Smartphone SoCs


MediaTek: Satellite Connectivity the Next Strategic Battleground for Mobile SoCs (Structural Long)

Technology / Semiconductor / Internet Research

Nicolas Baratte

<ul>
<li>Mediatek beats in 1Q, good guidance for 2Q, but close to Consensus. Several positives in 2025: flagship smartphone gains, smartphone AI upgrades, strong WiFi and Connectivity growth, progress in Auto.</li>
<li>How large is the “sizable revenue” opportunity of data center custom ASICs from 2026? Management sounds increasingly positive / confident. The stock valuations reflect this.</li>
<li>The stock trades at 18.5x 2025 EPS, 15.5x 2026 EPS, not extravagant but on the high-end. If you have the stock, keep it. If you don’t, TSMC looks more interesting.  </li>
</ul>


Mediatek beats in 1Q, good guidance for 2Q, but close to Consensus. Several positives in 2025: flagship smartphone gains, smartphone AI upgrades, strong WiFi and Connectivity growth, progress in Auto.
How large is the “sizable revenue” opportunity of data center custom ASICs from 2026? Management sounds increasingly positive / confident. The stock valuations reflect this.
The stock trades at 18.5x 2025 EPS, 15.5x 2026 EPS, not extravagant but on the high-end. If you have the stock, keep it. If you don’t, TSMC looks more interesting.  


Mediatek 1Q25 6% Beat, Growth Accelerating in 2Q, Large Revenue Opportunity for Data Center ASIC

<ul>
<li>Q25: inline with a GP one-off.  3Q25: FX impact but still revenue decline QoQ. Add margins compression and 3Q guidance is a large miss: OP -20% below Consensus.</li>
<li>Management continues to provide very bullish “indications” on growth from 2026-27: AI ASIC, collaboration with Nvidia, Automotive. Multiple analysts questions on risk of hyperscalers projects delayed or cancelled.</li>
<li>Mediatek is entering very large markets (AI ASIC, Auto) that will provide new growth beyond the exhausted Mobile market. You want to buy into this after a ~20% correction.</li>
</ul>


Q25: inline with a GP one-off.  3Q25: FX impact but still revenue decline QoQ. Add margins compression and 3Q guidance is a large miss: OP -20% below Consensus.
Management continues to provide very bullish “indications” on growth from 2026-27: AI ASIC, collaboration with Nvidia, Automotive. Multiple analysts questions on risk of hyperscalers projects delayed or cancelled.
Mediatek is entering very large markets (AI ASIC, Auto) that will provide new growth beyond the exhausted Mobile market. You want to buy into this after a ~20% correction.


MTK 2Q25: Inline but Positive One-Off. Weak 3Q with Revenue Decline QoQ and Margins Compression.

Taiwan Tech Focused Senior Analyst

Patrick Liao

<ul>
<li>3Q25 Guidance: Sales: NT$130.1–140B, down 7–13% QoQ / down 1% to up 6% YoY; (In USD: down 1–8% QoQ / up 8–18% YoY).</li>
<li>Strong flagship sales expected in 3Q25, and market demand for Smartphone (SP) expected to remain healthy, while Flagship model ramp-up being expected from 3Q25 to 1Q26.</li>
<li>ASIC business scale may impact chip lifespan, affecting post-2027 sales.</li>
</ul>


3Q25 Guidance: Sales: NT$130.1–140B, down 7–13% QoQ / down 1% to up 6% YoY; (In USD: down 1–8% QoQ / up 8–18% YoY).
Strong flagship sales expected in 3Q25, and market demand for Smartphone (SP) expected to remain healthy, while Flagship model ramp-up being expected from 3Q25 to 1Q26.
ASIC business scale may impact chip lifespan, affecting post-2027 sales.


MediaTek (2454.TT): FX Negatively Impacts the 3Q25 Guidance.

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.

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Mediatek Inc (2454 TT)

PC Monitor: Nvidia GB10 PCs Poised to Redefine the AI PC Category

Nvidia's GB10 brings AI performance to desktop PCs, transforming them into "true" AI machines and driving market growth for Mediatek, Asustek, and...

Vincent Fernando, CFA

MediaTek: Satellite Connectivity the Next Strategic Battleground for Mobile SoCs (Structural Long)

Push by Starlink to engage with chipmkers for direct to satellite technology in smartphones could revolutionize the telecom industry by making...

Vincent Fernando, CFA

Mediatek 1Q25 6% Beat, Growth Accelerating in 2Q, Large Revenue Opportunity for Data Center ASIC

Mediatek's strong performance in 1Q and positive outlook for 2Q, with potential growth in flagship smartphones, AI upgrades, and connectivity, but...

Nicolas Baratte

MTK 2Q25: Inline but Positive One-Off. Weak 3Q with Revenue Decline QoQ and Margins Compression.

Mediatek 3Q guidance missing expectations by 20%. Management remains optimistic about growth from 2026-27, entry into new markets like AI ASIC and...

Nicolas Baratte

MediaTek (2454.TT): FX Negatively Impacts the 3Q25 Guidance.

3Q25 sales guidance shows potential decline, but strong flagship sales and healthy SP demand expected. ASIC business scale may impact post-2027...

Patrick Liao

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

PC Monitor: Nvidia GB10 PCs Poised to Redefine the AI PC Category

​Nvidia's GB10 brings AI performance to desktop PCs, transforming them into "true" AI machines and driving market growth for Mediatek, Asustek, and...

Vincent Fernando, CFA

MediaTek: Satellite Connectivity the Next Strategic Battleground for Mobile SoCs (Structural Long)

Push by Starlink to engage with chipmkers for direct to satellite technology in smartphones could revolutionize the telecom industry by making...

Vincent Fernando, CFA

Mediatek 1Q25 6% Beat, Growth Accelerating in 2Q, Large Revenue Opportunity for Data Center ASIC

​Mediatek's strong performance in 1Q and positive outlook for 2Q, with potential growth in flagship smartphones, AI upgrades, and connectivity, but...

Nicolas Baratte

MTK 2Q25: Inline but Positive One-Off. Weak 3Q with Revenue Decline QoQ and Margins Compression.

​Mediatek 3Q guidance missing expectations by 20%. Management remains optimistic about growth from 2026-27, entry into new markets like AI ASIC and...

Nicolas Baratte

MediaTek (2454.TT): FX Negatively Impacts the 3Q25 Guidance.

​3Q25 sales guidance shows potential decline, but strong flagship sales and healthy SP demand expected. ASIC business scale may impact post-2027...

Patrick Liao

Nvidia's GB10 brings AI performance to desktop PCs, transforming them into "true" AI machines and driving market growth for Mediatek, Asustek, and...

Mediatek's strong performance in 1Q and positive outlook for 2Q, with potential growth in flagship smartphones, AI upgrades, and connectivity, but...

Mediatek 3Q guidance missing expectations by 20%. Management remains optimistic about growth from 2026-27, entry into new markets like AI ASIC and...

3Q25 sales guidance shows potential decline, but strong flagship sales and healthy SP demand expected. ASIC business scale may impact post-2027...