MediaTek share prices reaching the skies as Asia Brokerage raises it to NT$500

MediaTek share prices reaching the skies as Asia Brokerage raises it to NT$500

Finance, Information Technology, Management System, News, Press Release

A target price on Taiwan-based Integrated Circuit designer MediaTek Inc. shares has been raised to NT$500 (US$ 16.39) by the Asian brokerage in Taipei, with optimism for the company’s 5 G Chips development efforts.

In a research report, MediaTek’s first 5 G system-on-chip (SoC) in its Mobile SoC family Dimensions in Taipei and Shenzhen Tuesday is expected to see sales growth in 2020, the Asian securities company unveiled the Dimension 1000 chip.

MediaTek’s shares on Friday shut down by 2.32 percent in line with the Taiwan Stock Exchange at NT$ 421.50, which saw the weighted stock fall 1.10 percent to 11.489.57 points due to increased concern over commercial frictions between the US and China following the US. Despite a warning from Beijing, President Donald Trump signed a bill in favor of Hong Kong.

Even with the fall on Friday, the sharing price of MediaTek has risen more than 34 percent, at a high hope of its 5 G chip shipments, since the beginning of the third quarter. This has enabled its shares to exceed the wider market, which during that time gained about 7%.

According to MediaTek, the introduction of new chip-based, dimension-1000 gadgets, which used the Taiwan Semiconductor Manufacturing Co. (TSMC), in the 1 quarter of next year, will be planned by the international smartphone brands.

Market analysts told Shenzhen that a move to introduce the Dimension 1000 chip showed that MediaTek is hoping for greater participation in China. They say that Xiaomi and OPPO are Chinese customers of MediaTek.

The Asian brokerage has predicted that 1000-chip dimensional deliveries will reach NTD 21.75 and NTD 25.84 respectively in 2020, compared to an earlier figure of 38 million by 2020. MediaTek’s revenue per share is projected for 2020 and 2021.

The company has shown its Dimension 1,000 chip is more potent than Snap Dragon 855, the technology strongness of Qualcomm Inc., which is expected to help Taiwanese companies secure more orders from Chinese brands. The company also reported an NT $490 price target for MediaTek shareholdings. The dealer’s rating on the stock was “overweight.”

The third US courier said it gave the partnership between MediaTek and Intel an impetus for this cooperation, adding alternative selling resources to the IC designer. It urged investors in MediaTek shares to increase their holdings.