NVIDIA's $3.5B investment in convertible bonds lifts MediaTek shares 10%
MediaTek just got a big boost: its shares shot up 10% after NVIDIA announced a $3.5 billion investment, its biggest move outside the US so far.
The deal lets NVIDIA buy bonds that can turn into MediaTek shares, all part of a larger $3.9 billion bond sale revealed on August 31.
MediaTek adopts NVIDIA NVLink Fusion platform
This isn't just about money; it's about teaming up for the future.
NVIDIA and MediaTek are combining forces, mixing NVIDIA's AI expertise with MediaTek's chip design skills.
MediaTek will adopt NVIDIA's NVLink Fusion platform, giving hyperscalers and cloud providers a validated path to build custom processors that connect into NVIDIA's rack-scale AI systems, aiming for $2 billion in revenue from its AI chip business this year and hoping to grab 15% of an $80 billion market by 2027.
MediaTek's vice chairman and chief executive Rick Tsai says this will speed up innovation in both AI infrastructure and automotive tech, with partnerships like Google and speculation among analysts that SpaceX could become its next AI customer helping drive growth.