MediaTek (2454.TW) has witnessed a remarkable cumulative increase of 21.83% in its stock price this week, marking the most significant single-week gain since 2002. This surge is largely driven by investors' favorable responses to the latest advancements in Google's Gemini large-scale model and its AI chip collaboration. MediaTek has teamed up with Google to develop Tensor Processing Units (TPUs), which are poised to challenge NVIDIA's dominance in the AI application sector. Analysts from Morgan Stanley have observed that while MediaTek may continue to face challenges in the Chinese smartphone market until 2026, the long-term growth potential of Google's TPU business is expected to counterbalance the negative effects on its smartphone operations. As a result, Morgan Stanley upgraded MediaTek's rating from 'Neutral' to 'Overweight' on Thursday. Similarly, UBS Group has revised its sales forecast for MediaTek's TPU business in 2027, raising it from $1.8 billion to $4 billion. The group believes that, if the execution is seamless, this business segment could account for 20% of the company's operating profit by 2028.