Taiwan’s MediaTek shares jump after Nvidia invests $3.5 bln

MediaTek (TW:2454) shares jumped on Tuesday after Nvidia (NASDAQ:NVDA) said it would invest $3.5 billion in the Taiwanese chip designer, deepening their partnership in AI infrastructure and expanding Nvidia's reach beyond its core graphics processors.

Nvidia will buy $3.5 billion of MediaTek convertible bonds as part of the latter's record $3.9 billion overseas bond issuance, the companies said in a joint statement.

Taipei-listed MediaTek shares jumped 9.9% to NTD 4,315.00 by 01:39 GMT.

The investment will strengthen collaboration on data-centre AI systems, personal computing and AI-powered vehicles. 

The partnership will allow MediaTek customers to use Nvidia's NVLink Fusion technology to develop custom AI chips that can connect more easily with Nvidia's computing systems, potentially reducing development costs and time.

MediaTek has been expanding its ambitions in AI data-centre chips and secured approval for a $5 billion funding plan in July, while its partnership with Nvidia has already extended to AI-enabled PCs and automotive technology.