Investing.com-- Shares of Taiwan's MediaTek Inc (TW:2454) rose on Monday, after its chief executive said demand for artificial intelligence would continue to grow, although the pace may vary.
Mediatek rose 2.3% to T$4,005, earlier rising as much as 4%.
Demand growth for AI will continue "for sure", CEO Rick Tsai said in a post earnings call on Friday.
Tsai said demand for the chip designer's first AI accelerator remained strong. Initial shipments began last month and are expected to generate $2.5 billion in revenue in the fourth quarter.
For MediaTek's second AI accelerator project, high-volume production is on track for the first quarter of 2028, he said.
MediaTek, Taiwan's largest chip designer, reported third-quarter revenue of T168.1 billion($5.16 billion), up 18.3% from a year earlier. Net income rose 10.8% year-on-year to T$28.2 billion.
The company has been reducing its reliance on smartphones and aims to become a significant supplier of custom AI chips to major cloud providers.
MediaTek, a customer of the world's largest contract chipmaker TSMC, is the second-most valuable company on the Taiwan stock exchange, with a market capitalisation of $200 billion.
Original Article
MediaTek shares rise as CEO flags strong AI-fueled chip demand
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