Mediatek 1Q25 nice 6% beat, growth accelerating in 2Q, management reiterates a large revenue opportunity for data center ASIC

Apr 30, 2025

∙ Paid

Mediatek beats in 1Q, provides a good guidance for 2Q, but close to Consensus. There are several positives in 2025: flagship smartphone gains, smartphone AI upgrades, strong WiFi and Connectivity growth, progress in Auto.
How large is the “sizable revenue” opportunity of data center custom ASICs from 2026? Management sounds increasingly positive / confident. The stock valuations reflect this.
The stock trades at 18.5x 2025 EPS, 15.5x 2026 EPS, not extravagant but on the high-end. If you have the stock, keep it. If you don’t, TSMC looks more interesting.

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