MediaTek February Revenue Drops 9%, Confident in Q1 Target
Recently, MediaTek has announced its consolidated revenue for February, reaching NT$46.172 billion. While this represents a 9.7% month-over-month decline, it still marks a record high for the same period, reflecting a 19.9% year-over-year increase. For the first two months of the year, the company recorded NT$97.316 billion in revenue, an annual growth of 17.2%. Analysts anticipate that MediaTek is on track to meet its financial targets for the current quarter.
Previously, MediaTek projected its Q1 consolidated revenue to range between NT$140.8 billion and NT$151.8 billion, based on an exchange rate of 1 USD to 32.5 NTD. This forecast represents a sequential increase of 2% to 10%, with an estimated gross margin of 47% ± 1.5 percentage points. MediaTek’s stock closed at NT$1,395 after a NT$70 decline.
Analysts estimate that if MediaTek's March revenue surpasses NT$43.484 billion, it will meet its lower-end guidance. Achieving revenue above NT$54.484 billion would exceed the higher-end projection, reinforcing confidence in the company’s ability to reach its quarterly financial targets.
Despite the traditionally slow season, MediaTek remains optimistic about its business outlook. CEO Rick Tsai highlighted growing demand for smartphones, driven by government subsidy policies in China, alongside strong orders for TVs, WiFi solutions, tablets, and Chromebooks as companies navigate global tariff uncertainties. These factors are expected to contribute to better-than-seasonal revenue performance this quarter.
In the smartphone sector, MediaTek anticipates broader adoption of its Dimensity 9400 and 9300 series chips this year. General Manager CH Chen revealed that the upcoming Dimensity 9500 chipset has gained traction among clients at a faster rate than its predecessor. MediaTek continues to expand its share in China's flagship smartphone chip market, which grew from over 30% in 2023 to around 40% last year, with further increases expected in 2024.
For its smart device platform business, MediaTek foresees a significant acceleration in WiFi 7 adoption across broadband, laptops, and routers. The company expects WiFi 7-related revenue to more than double this year. Additionally, the high-end AI tablet market is showing strong momentum, with most non-Apple brands incorporating MediaTek’s chips into their flagship AI tablets.
MediaTek is also strengthening its presence in the automotive sector, focusing on smart cockpit solutions and in-vehicle communication systems. The company projects steady quarterly growth in automotive-related revenue throughout the year.
Overall, MediaTek anticipates robust performance for its smart device platform business in Q1, driven by increasing demand for wireless and wired connectivity solutions, computing devices, and product portfolio optimization.
Regarding power management ICs, MediaTek expects seasonal revenue declines in this segment for Q1. However, the company is committed to expanding into new applications, including automotive and data center solutions, to drive future growth.
