Ariel International Fund on MediaTek Inc.
Thesis
Ariel sees MediaTek expanding its role as a supplier to Google's cloud and AI infrastructure. Faster adoption of Tensor Processing Units and the company's profitable cloud ASIC business could produce a steeper revenue ramp, stronger margins and greater operating leverage. Potential wins with other hyperscalers plus momentum in flagship smartphones and AI-enabled devices provide additional growth vectors.
“accelerating AI demand, improving margins and multiple growth drivers have led to a positive re-rating of the shares.”