NVIDIA PUTS $3.5B INTO MEDIATEK, STOCK JUMPS 10%

🚨 Nvidia just put $3.5 billion into MediaTek, and the stock closed 10% higher.

CNBC reports the investment came as convertible bonds issued by the Taiwanese chip firm, part of a partnership announced Monday.

MediaTek is the world's biggest smartphone chip company by market share, according to Counterpoint Research, and Qualcomm's main rival. But the growth story now is data centers.

The deal gives MediaTek access to Nvidia's NVLink Fusion platform. Translation: the custom AI chips MediaTek designs for other companies can slot directly into Nvidia's AI infrastructure and systems.

That matters for Nvidia too. Hyperscalers and big tech firms are increasingly building their own silicon to run AI workloads. NVLink Fusion is how Nvidia stays central to the plumbing even when the chip inside isn't its own.

It also puts MediaTek in the path of Broadcom, the current leader in custom AI chips.

📈 MediaTek shares are up nearly 200% this year.

In June the company said its custom AI chip business would deliver $2 billion of revenue this year, with a total addressable market of up to $80 billion by 2027. CNBC says it has asked MediaTek whether the Nvidia deal changes that number.

Nvidia CEO Jensen Huang called MediaTek "one of the world's great semiconductor companies" in Monday's release.

Who loses more from this deal, Qualcomm or Broadcom?

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