MediaTek 30% Revenue Growth, Dimensity 9400 in October

MediaTek reported a 9% month-over-month revenue decline in August, with a year-over-year decrease of 1.7%. However, cumulative revenue for the first eight months of the year showed a 29.9% increase, aligning with market expectations. Financial analysts remain optimistic about MediaTek's future, projecting strong growth for its Dimensity 9400 and ASIC businesses. Based on these factors, MediaTek’s earnings per share (EPS) for this year are expected to reach approximately NT$58.

Analysts noted that with an exchange rate of USD 1 to NT$32.3, MediaTek's Q3 revenue guidance ranges from NT$123.5 to NT$132.4 billion, with a gross margin of 47% ± 1.5% and an operating expense ratio of 30% ± 2%. Revenue growth for the year, excluding one-time items, is projected to increase by 14–16%, with a gross margin of 46–48%.

MediaTek's next-generation flagship chip, the Dimensity 9400, is set to launch in October, bringing new growth potential. Built on the industry's leading 3nm process technology, the Dimensity 9400 offers significant improvements in performance and energy efficiency, while also enhancing generative AI capabilities. MediaTek expects the chip's market performance to be strong upon release.

The company emphasized that customer feedback on the Dimensity 9400 has been overwhelmingly positive, with more devices adopting this chip compared to its predecessor, the Dimensity 9300. MediaTek anticipates flagship product revenue growth of over 50% in 2024. Analysts further predict that despite flat Q3 revenue growth, positive customer feedback and a promising ASIC market position will help MediaTek achieve its EPS target of approximately NT$58 for the year.