MediaTek , the Taiwanese semiconductor company collaborating with Nvidia on its small artificial intelligence supercomputer, is expected to see significant financial benefits from the partnership starting in 2026, according to Bernstein. The project, unveiled by Nvidia at the electrics show CES this week, involves MediaTek’s contribution to the Grace Blackwell 10 (GB10) chip design, which powers Nvidia’s Project DIGITS — a desktop supercomputer aimed at AI researchers and data scientists. The system, priced starting at $3,000, is set to launch in May this year. 2454-TW 1Y line “We hence expect a more gradual design-in cycle and volume ramp, with more notable benefits to MediaTek likely in 2026,” Bernstein analysts led by Mark Li said in a note to clients on Jan. 8. “From the picture shown by Nvidia, we note the CPU [central processing unit] die provided by MediaTek has a fairly large die size,” “We believe it is based on N3 and has been taped out to TSMC late 2024,” the analysts added, referring to Nvidia’s primary chip supplier Taiwan Semiconductor Manufacturing Company . MediaTek shares are traded over the counter in the U.S. while TSMC is listed on the NYSE. Despite the new product launch, Bernstein analysts did not raise their price target, and continued to project MediaTek’s growth to accelerate significantly in 2026, forecasting a “20% increase in revenue and 30% in [earnings per share].” Bernstein maintained its “Outperform” rating on MediaTek stock with a price target of 1,680 New Taiwan dollars ($51.1), pointing to a 14% upside potential from the current share price of 1,470 New Taiwan dollars. The analysts cautioned that their 2026 earnings projections are already 10% ahead of consensus estimates, even without factoring in potential additional benefits from MediaTek’s collaboration with Nvidia on automotive and personal computer projects. MediaTek’s involvement in Nvidia’s DIGITS project represents a significant step in the company’s expansion beyond its traditional smartphone chip business, positioning it to capitalize on the growing demand for AI. — CNBC’s Michael Bloom contributed reporting.
