MediaTek Shares Soar on $3.5 Billion Nvidia Partnership

MediaTek, the Taiwanese chip firm and rival to Qualcomm, has seen its shares surge 10% after announcing a partnership with Nvidia. The deal sees Nvidia investing $3.5 billion in convertible bonds issued by MediaTek.

This investment is part of MediaTek's push into the data center market, where hyperscalers and other tech companies are increasingly building custom chips to run AI workloads.

MediaTek is emerging as a player that can build these custom chips, posing a potential challenge to Broadcom, a market leader.