MediaTek’s stock price has posted its strongest two-day performance ever, surging by a cumulative 19% and closing at a record high. Over the past two months, investor confidence has grown as the market has increasingly recognized MediaTek’s R&D investments in Google’s Tensor Processing Unit (TPU) technology, fueling a steady climb in its share value. With fund managers constrained by individual stock limits for their TSMC holdings, many have shifted focus toward AI-related companies as part of a broader diversification strategy. MediaTek’s strategic pivot toward high-margin, customized AI chip products has positioned it as an attractive alternative investment, particularly as Morgan Stanley analysts express optimism about the growth potential of its AI-specific integrated circuits.

On Monday, MediaTek was among the tech firms driving the Taiwan Stock Exchange Weighted Index to a new peak, even as TSMC’s shares declined. According to Morningstar analysts, while MediaTek’s recent earnings guidance has been cautious, the market appears to anticipate that the company will outperform these projections.