AI Chip Boom Fuels Taiwan Firm’s 40% Rally, Beating Qualcomm and Peers

  • Company’s Dimensity 9300 chip is viewed as a game changer
  • Valuation relative to growth prospect is attractive, GAM says
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A five-month rally in MediaTek Inc. looks set to extend as booming demand for smartphones and a promising new AI chip brighten the company’s outlook.

The Taiwanese tech firm’s stock has soared almost 40% since the end of June, outperforming a 2% advance in the Philadelphia Stock Exchange Semiconductor Index and a 7% rise in its US-based rival Qualcomm Inc. The gains have been fueled by robust appetite for mobile devices that utilize the company’s chips, especially in China.