MediaTek January Revenue Hits NT$50B, Q1 Growth Expected

MediaTek reported impressive results for January, with consolidated revenue surpassing NT$50 billion, reaching NT$51.144 billion. Despite the Lunar New Year holiday reducing the number of working days, the company achieved a 22.7% month-on-month growth and hit its highest level in nearly 28 months. The January revenue also marked a 14.9% year-on-year increase.

Rick Tsai, MediaTek's CEO, forecasted last week that demand for smartphones would benefit from subsidies in mainland China, along with demand for products like televisions, Wi-Fi devices, tablets, and Chromebooks driven by uncertainties surrounding global tariffs. Tsai expects Q1 2025 revenue to outperform typical seasonal trends.

January's performance sets a positive tone for MediaTek's first-quarter results. After reaching a peak price of NT$1,570 last week, the stock corrected, ending the day down NT$45 at NT$1,480. Foreign investors continued to sell, with a net outflow of 3,414 lots for the third consecutive day.

Looking ahead, MediaTek projects Q1 2025 revenue to be between NT$140.8 billion and NT$151.8 billion, reflecting a 2% to 10% quarter-on-quarter growth. This represents a 6% to 14% year-on-year increase. The company expects a gross margin of approximately 47%, with a possible variance of 1.5 percentage points.

MediaTek's smartphone business saw more than a 10% quarterly increase in Q4 2024, driven by the mass production of its Dimensity 9400 flagship chip. The company anticipates broader adoption of both Dimensity 9400 and 9300 series chips in smartphones this year, which will strengthen its market position and support its leadership in the industry.

With more 5G and advanced AI chips being integrated into devices, MediaTek is optimistic that its favorable product mix will continue to drive higher average selling prices (ASP). In addition, the company is seeing an uptick in demand for smartphones in line with China’s subsidy policies, and anticipates slight growth in mobile revenue this quarter.

On the smart devices front, MediaTek highlighted the continued trend of communications technology upgrades and the adoption of advanced AI features in computing devices. These trends are expected to support the company's product portfolio and ASP improvements throughout the year.

MediaTek also expects Wi-Fi 7 to accelerate its adoption in broadband, laptops, and routers, predicting that revenue from Wi-Fi 7 will more than double this year. The company is also seeing strong growth in the tablet market, with nearly all non-Apple high-end AI tablets featuring MediaTek chips.

In the automotive sector, MediaTek continues to expand its market share, with ongoing projects in smart cockpit and in-car communication systems. The company forecasts steady quarter-on-quarter growth in automotive revenue this year.

This robust performance positions MediaTek for a promising 2025, driven by strategic product developments and favorable market trends.