Emir BardakçıWe normally think of the value of a smartphone in terms of its resale value or camera features, but the heart of your smartphone, i.e., the silicon, plays a huge role. If you are a Xiaomi or POCO user and your smartphone is powered by a MediaTek chipset, then your smartphone has increased its value significantly.
MediaTek, the powerhouse behind many top-tier Xiaomi devices, has seen its stock price rise by 19% in the last two days. While this may seem like random fluctuations, it is actually the result of a massive new partnership between the company and Google, which is going to change the future of mobile AI and the capabilities of the devices in your pocket.
TL;DR
- MediaTek stock rose to an all-time high after a significant AI chip deal was struck with Google, rising by 19%.
- This partnership is a validation of MediaTek’s move from standard mobile chips to high-end AI silicon.
- Xiaomi and POCO devices that use Dimensity processors can look forward to improved support and AI.
- The market is now recognizing MediaTek as a viable alternative to traditional market leaders, which in turn is enhancing the prestige of devices powered by them.
The Google Connection: What Happened?
Mediatek has officially announced that it has entered into an agreement to work with Google in the field of AI chips, particularly Tensor Processing Units (TPUs). As a result, the company’s shares have surged to a new record high following the news.
The stock increased by 8.6% on a single Monday, ending a massive two-day rally. This, in essence, means that the market now trusts MediaTek’s R&D investments in AI, moving beyond the label of being a ‘budget’ chipmaker.
Does this mean my Xiaomi phone is worth more?
In that functional sense, yes. There was a certain stigma in the past, especially when purchasing high-end phones that used MediaTek processors, as users were worried that they were not as “premium” as their Qualcomm Snapdragon processor-based competitors, and this partnership essentially kills that.
And with Google giving its seal of approval to MediaTek’s tech, we can be sure that any new features of Xiaomi HyperOS AI in the future will perform very well on Dimensity-powered devices. Morgan Stanley analysts have also expressed optimism on the “huge potential of MediaTek’s AI-specific integrated circuits.”
Which Devices Benefit the Most?
This news is particularly exciting to owners of the Xiaomi T Series, which are often rebranded from the China-exclusive Redmi K Ultra series of phones, as well as the high-performance POCO lineup.
For instance, the REDMI K80 Ultra, set to release globally under the name Xiaomi 15T Pro, is powered by the best MediaTek processors. As MediaTek is shifting focus to high-margin customized AI chips, the upcoming devices would likely compete with the Snapdragon 8 Elite in terms of AI capabilities.
Why Investors Are Ditching TSMC for MediaTek?
It’s not just about the tech; it’s about market movement. Fund managers are diversifying out of TSMC due to shareholding limits and pouring money into MediaTek as the next big AI bet.
Although TSMC took a small hit (-0.9%), MediaTek joined other technology titans like UMC in propelling the Taiwan Weighted Index to new record highs. This is the ultimate vote of confidence in the company’s staying power at the high table, meaning your Xiaomi flagship will remain a top-tier contender for years to come.
