MediaTek has announced a cautious outlook for the current quarter, projecting a modest 0.5% sequential growth in revenue despite entering the traditional peak season. During a press conference on July 31, the company reaffirmed its full-year growth target, expecting US dollar revenue to increase by 14% to 16% annually in 2024.
CEO Rick Tsai revealed that MediaTek’s latest 5G flagship chip, the Dimensity 9400, is slated for an October release and will utilize a 3-nanometer process. This new chip aims to enhance generative AI capabilities and is anticipated to debut in a greater number of models compared to its predecessor, the Dimensity 9300. Cai expressed confidence that flagship product revenue will surge by over 50% in 2024.
Cai also highlighted the significant potential in the global ASIC market, driven by data centers’ demand for customized chips to lower total cost of ownership (TCO). MediaTek’s flexible ASIC business model is designed to cater to these needs, offering opportunities in AI accelerators and Arm architecture CPUs.
For the current quarter, MediaTek forecasts revenues between NT$123.5 billion and NT$132.4 billion (US$3.83 billion to US$4.10 billion), reflecting a slight 3% to 4% growth from the previous quarter and a 12% to 20% increase year-over-year. The midpoint estimate of NT$127.95 billion (US$3.97 billion) suggests a quarter-on-quarter increase of approximately 0.5%.
The company also projects a gross profit margin of 47%, plus or minus 1.5 percentage points, and net earnings per share ranging from NT$13.13 to NT$16.05.
MediaTek remains steadfast in its financial goals for 2024, aiming for a 14% to 16% annual increase in US dollar revenue, with a gross profit margin between 46% and 48% after excluding one-time items. The fourth quarter’s performance will largely depend on consumer product sales, with potential gains from the Dimensity 9400 chip, though it may revert to pre-pandemic seasonal trends.
For the full year, MediaTek anticipates an annual revenue growth rate of around 14%, equating to approximately NT$494.128 billion (US$15.32 billion). This implies a second-half revenue target of NT$233.4 billion (US$7.23 billion), slightly lower than the first half. Based on the third-quarter midpoint estimate of NT$127.95 billion (US$3.97 billion), the fourth-quarter revenue would need to reach about NT$105.4 billion (US$3.26 billion) to meet the year-end operating target.
