MediaTek reports 44% surge in monthly sales driven by AI chips

MediaTek just posted the kind of revenue growth that makes investor presentations write themselves. The Taiwanese semiconductor company reported consolidated net sales of NT$64.2 billion, roughly $2 billion, for August 2026. That’s a 44% jump compared to the same month last year.

Google’s custom silicon bet is paying MediaTek’s bills

The revenue surge traces back to MediaTek’s deepening relationship with one particular customer: Alphabet’s Google. The company has been developing custom AI accelerators, known as application-specific integrated circuits (ASICs), tailored specifically for Google’s data center needs.

MediaTek’s first Google-linked AI ASIC is scheduled for mass production in the fourth quarter of 2026. The company is targeting approximately $2 billion in AI-related revenue for the full year. The company has its sights set on capturing 10-15% or more of the projected $80 billion AI accelerator market by 2027. A second-generation ASIC is already in the pipeline, with mass production eyed for late 2027.

Nvidia’s $3.5 billion vote of confidence

Nvidia invested up to $3.5 billion in MediaTek through a convertible bond sale. The two companies are also collaborating on several AI-focused initiatives, including advancements in laptop GPU technology through a product line called RTX Spark.

The smartphone problem hasn’t gone away

MediaTek’s traditional bread and butter, smartphone chipsets, is under pressure from multiple directions. Global smartphone shipment growth has softened, and rising memory costs are squeezing margins across the supply chain. Meanwhile, Qualcomm continues to push aggressively in the premium and mid-range segments where MediaTek has historically competed.

What this means for the semiconductor landscape

Broadcom has been the most prominent player in the custom ASIC space, designing chips for Google, Meta, and others. MediaTek’s entry adds another serious competitor, backed by Nvidia’s capital.

If MediaTek hits its 10-15% market share target in an $80 billion market by 2027, that would translate to $8-12 billion in annual AI accelerator revenue. MediaTek’s Q4 2026 production milestone for its first Google ASIC will be a critical proof point.

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