Morgan Stanley maintains MediaTek (TPE:2454) as its top stock pick, highlighting the company's technology and execution in cloud AI ASIC design services and edge AI potential, as presented at the Taiwan AI Summit 2026.
MediaTek co‑COO and CFO David Ku stated on May 25, 2026 that the firm will avoid ASIC commoditization driven by customer‑owned tooling trends by adding value and leveraging 2nm chiplet technology; cloud AI ASIC operating margins are expected to stay above the corporate average.
The company clarified that its system integration for Google’s TPU uses chiplet and interconnect technology rather than rack‑level or networking designs.
MediaTek secured a 2nm ASIC project expected to be TPU v9 and is bidding for the next‑generation project; it has received multiple RFQs from cloud service providers and aims to add one additional customer besides Google by the end of 2026.
For agentic AI compute, MediaTek plans to serve PC and server CPU opportunities through merchant or ASIC design services, with major ASIC designs covering both training and inference, giving volume upside for TPU v8 and TPU v9 versus Street consensus.
Management indicated future growth will complement smartphone business, with continued edge compute expansion, potential AI‑phone collaborations, and automotive opportunities.
Morgan Stanley projects upside through 2030 from a future TPU v10 “IceFish” and expects growth for TPU v8/v9 in PC, server and automotive markets.
