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>Qualcomm's latest earnings came in at the high end of guidance with automotive revenue surging and mobile steady. We analyze QCOM results' key implications for Mediatek.</li>
<li>Qualcomm's 2024E global handset market volume guidance remained unchanged vs. last quarter; however we believe Mediatek may have taken some market share in CY1Q24.</li>
<li>Qualcomm confirmed Mediatek's view regarding high-end phone demand strength right now, with AI capabilities the likely driver. Combining QCOM + Mediatek color suggests an AI-driven handset upgrade cycle ahead.</li>
</ul>


Qualcomm's latest earnings came in at the high end of guidance with automotive revenue surging and mobile steady. We analyze QCOM results' key implications for Mediatek.
Qualcomm's 2024E global handset market volume guidance remained unchanged vs. last quarter; however we believe Mediatek may have taken some market share in CY1Q24.
Qualcomm confirmed Mediatek's view regarding high-end phone demand strength right now, with AI capabilities the likely driver. Combining QCOM + Mediatek color suggests an AI-driven handset upgrade cycle ahead.


Key Insights from Qualcomm's Latest Data; Mediatek Taking Market Share?

Tracking developments across tech supply chains, Tech Supply Chain Tracker

Tech Supply Chain Tracker

Tracking developments across tech supply chains

<ul><li>AI server cooling options include liquid &amp; air solutions to improve efficiency and performance.</li><li>India is set to introduce a new chip incentive package to boost its semiconductor industry.</li><li>Apple's supply chain expansion in Southeast Asia, especially Vietnam, has been significant, while MediaTek aims for 30% market share in China with upcoming flagship SoC.</li></ul>

AI server cooling options include liquid &amp; air solutions to improve efficiency and performance.India is set to introduce a new chip incentive package to boost its semiconductor industry.Apple's supply chain expansion in Southeast Asia, especially Vietnam, has been significant, while MediaTek aims for 30% market share in China with upcoming flagship SoC.

Tech Supply Chain Tracker (30-Apr-2024): AI server cooling: liquid & air solutions

<ul>
<li>Mediatek Enjoying a Massive Rebound for its Mobile Phone Segment; Most Optimistic About High-End Smartphone Demand</li>
<li>New AI Data Center Growth Driver on the Horizon; Recent Investment in U.S. AI Server Chip Startup</li>
<li>Recent Share Price Dip is an Accumulation Opportunity; We Rate Mediatek as a Structural Long</li>
</ul>


Mediatek Enjoying a Massive Rebound for its Mobile Phone Segment; Most Optimistic About High-End Smartphone Demand
New AI Data Center Growth Driver on the Horizon; Recent Investment in U.S. AI Server Chip Startup
Recent Share Price Dip is an Accumulation Opportunity; We Rate Mediatek as a Structural Long


Mediatek Seeing Massive Rebound in Mobile; Major AI Data Center Driver on the Horizon

Taiwan Tech Focused Senior Analyst

Patrick Liao

<ul>
<li>In 2Q24F, customer demand has slowed down in the traditional low season, as inventory levels normalize.  </li>
<li>In summary, sales in USD are expected to grow in the mid-teens YoY in 2024F. Smartphone growth will be the strongest driver of this growth. </li>
<li>MediaTek is a leader in the Wi-Fi 7 market and aims to gain significant market share with its diverse product portfolio this year.</li>
</ul>


In 2Q24F, customer demand has slowed down in the traditional low season, as inventory levels normalize.  
In summary, sales in USD are expected to grow in the mid-teens YoY in 2024F. Smartphone growth will be the strongest driver of this growth. 
MediaTek is a leader in the Wi-Fi 7 market and aims to gain significant market share with its diverse product portfolio this year.


MediaTek (2454.TT): 1Q24 Results Beat; 2Q24F Revenue Outlook Shows a Flat to Downward Scenario.

<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

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)

Tech Supply Chain Tracker (30-Apr-2024): AI server cooling: liquid & air solutions

AI server cooling with liquid & air solutions, India's new chip incentive package, Apple's Southeast Asia supply chain growth, MediaTek aims for...

Tech Supply Chain Tracker

Mediatek Seeing Massive Rebound in Mobile; Major AI Data Center Driver on the Horizon

Mediatek is enjoying strong growth in its mobile phone segment; with notable strength in high-end smartphones. The company could re-rate as its...

Vincent Fernando, CFA

MediaTek (2454.TT): 1Q24 Results Beat; 2Q24F Revenue Outlook Shows a Flat to Downward Scenario.

Customer demand has slowed in 2Q24F. Sales in USD are expected to grow in the mid-teens YoY and Smartphone growth will be the strongest driver in...

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

Key Insights from Qualcomm's Latest Data; Mediatek Taking Market Share?

We deep dive into Qualcomm's latest results and the key take-aways relative to Mediatek. Overall, we find the latest QCOM results as positive for...

Vincent Fernando, CFA

Tech Supply Chain Tracker (30-Apr-2024): AI server cooling: liquid & air solutions

AI server cooling with liquid & air solutions, India's new chip incentive package, Apple's Southeast Asia supply chain growth, MediaTek aims for...

Tech Supply Chain Tracker

Mediatek Seeing Massive Rebound in Mobile; Major AI Data Center Driver on the Horizon

​Mediatek is enjoying strong growth in its mobile phone segment; with notable strength in high-end smartphones. The company could re-rate as its...

Vincent Fernando, CFA

MediaTek (2454.TT): 1Q24 Results Beat; 2Q24F Revenue Outlook Shows a Flat to Downward Scenario.

​Customer demand has slowed in 2Q24F. Sales in USD are expected to grow in the mid-teens YoY and Smartphone growth will be the strongest driver in...

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 is enjoying strong growth in its mobile phone segment; with notable strength in high-end smartphones. The company could re-rate as its...

Customer demand has slowed in 2Q24F. Sales in USD are expected to grow in the mid-teens YoY and Smartphone growth will be the strongest driver in...

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