Shares of MediaTek declined 3.4% on Friday, closing at NT$1,710 in Taipei. Trading volume reached 11.8 million shares before the market shut for the weekend and the upcoming Lunar New Year holiday.
Financial Results and Strategic Shift
The company released its fourth-quarter figures, showing net sales of NT$150.2 billion, an increase of 8.8% year-over-year. However, net income contracted by 3.6% to NT$23.1 billion, with earnings per share at NT$14.39.
Executives outlined a significant strategic pivot, stating the firm will double its investment in data-center semiconductor technology. This includes advanced packaging solutions and high-speed interconnects, moving beyond its core smartphone chip business. President Joe Chen highlighted a focus on high-performance computing and application-specific integrated circuits (ASICs) for cloud service providers.
Market Pressures and Supply Chain Challenges
The stock's decline reflects broader investor caution toward Asian technology equities. Analysts suggest the move represents profit-taking following a recent rally. MediaTek's CEO, Rick Tsai, warned of rising costs across the semiconductor supply chain, driven by AI-related demand, and indicated the company would adjust pricing to manage profitability.
Further headwinds include potential softness in consumer electronics and rising memory prices, which Counterpoint Research forecasts could lead to a 7% drop in global shipments of advanced smartphone chips in 2026.
Looking Ahead
Investors are now focused on the company's January sales update, scheduled for release on February 10, just before the extended Lunar New Year market closure. Trading is set to resume on February 23, making pre-holiday data a key point of focus amidst a uncertain sector outlook.