#NvidiaBacksMediaTek
About NvidiaBacksMediaTek
Nvidia will invest $3.5B in MediaTek through convertible notes, expanding cooperation in custom AI infrastructure, PC chips and automotive platforms. MediaTek will join Nvidia's NVLink Fusion to build custom chips for rack-scale systems. The deal opens higher-value AI infrastructure to MediaTek and extends Nvidia's cloud, edge and auto network. Its success depends on translating technical ties into orders, profit and valuation gains without adding supply-chain capital and return pressure.
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AI earnings season wraps up, who is really making money across computing power, storage, and software lines?
On the computing power side, Nvidia's revenue reached ¥96.2 billion, exceeding expectations, with data center revenue at ¥89 billion, pushing the stock up 4 points after hours. Marvell's revenue hit a record high of ¥2.739 billion, up 37% year-over-year, yet its stock dropped 7% after hours because the market's#LaborMarketTestsWalsh #BTCGoldCorrelation #BroadcomDellAIResults
$NVDA - NVIDIA INVESTS $3.5 BILLION IN MEDIATEK TO EXPAND AI ECOSYSTEM
Nvidia will invest $3.5 billion in MediaTek through convertible bonds, deepening their AI chip partnership.
MediaTek will adopt Nvidia’s NVLink Fusion and NVHBM technologies, expanding Nvidia’s role in connecting custom chips inside AI data centers.
The deal comes as MediaTek targets up to 15% of an $80 billion data-center segment next year and expects about $2 billion in AI chip revenue this year.
Nvidia is seeking to keep its technology central to AI infrastructure as major customers develop their own chips.
NVDA:s resultat var enorma. Prisreaktionen är den verkliga signalen nu.
Alla är fokuserade på Nvidias rekordresultat. Jag följer vad priset gör med dem. $NVDA rapporterade en kvartalsintäkt på 96,2 miljarder dollar, upp 106 % år över år, medan intäkterna från datacenter nådde 89 miljarder dollar, upp 117 %. Ledningen gav också en prognos för nästa kvartal på 108 miljarder dollar. Men här är den intressanta delen: efter intäktsökningen backade NVDA till runt 217–219 dollar. Fredagen avslutades nära 217,55 dollar, med en handelsintervall på ungefär 216,81–229,26 dollar. Det skapar en tydlig beslutszon. BIAS: VÄNTA → LÅNG endast vid bekräftelse Jag skulle följa $2
The company selling the shovels just got nervous about its own gold rush.
Nvidia has reportedly paused parts of a financing program that gave AI cloud providers credit support in exchange for a cut of their revenue.
Internally, employees flagged the same concern outside critics have been raising for months: this looked like circular financing built to manufacture demand.
This follows Nvidia backing up to 105 billion dollars for a single customer's data center and helping arrange 500 billion in financing for others.
When the chip supplier has to step back from its own funding structure to avoid an antitrust fight, that's not a stable foundation.
Open-weight ecosystems don't need anyone to finance their own customers into existing.
Another interesting angle just digesting the wider ecosystem adopting NVLink is as that adoption expands it only deepens the existing and future investment in NVIDIA compute hardware. Even those making custom XPUs will still want to keep leveraging their current investment and their XPUs could also have angles of complementary compute to NVIDIA compute.
🦔Nvidia just invested $3.5 billion in convertible bonds issued by MediaTek, a chipmaker that builds around Nvidia's platform. The deal comes alongside an expanded partnership covering data center, PC, and automotive silicon. No conversion price, no coupon, no maturity was disclosed.
MediaTek will adopt Nvidia's NVLink Fusion platform, which pulls its customers into Nvidia's rack-scale systems. This follows the $105 billion OpenAI lease backstop, the $2 billion CoreWeave equity stake, and the $12.9 billion Hugging Face acquisition.
My Take
Nvidia invested in its own customer again. MediaTek builds on Nvidia's platform, and Nvidia just handed MediaTek $3.5 billion that will fund more building on Nvidia's platform. The convertible bond structure means Nvidia could eventually own a piece of MediaTek too, but the conversion terms weren't disclosed, so nobody outside the deal knows what the economics look like.
This year Nvidia has backstopped $105 billion of OpenAI's lease, bought $2 billion in CoreWeave equity, acquired Hugging Face for $12.9 billion, and now put $3.5 billion into MediaTek convertible debt. Every one of those companies either buys Nvidia chips or runs platforms that drive demand for them. I'd love to know what percentage of Nvidia's revenue comes from customers that Nvidia has financed, guaranteed, or invested in. That number isn't in any filing and I don't think it's small.
Hedgie🤗
JUST IN: @Nvidia has invested $3.5B in convertible bonds issued by MediaTek and expanded their partnership across AI infrastructure, PC chips and automotive platforms. MediaTek will adopt NVLink Fusion.
Tokenized $NVDA is live on Solana, tradable 24/7.
NVIDIA is investing $3.5B in MediaTek, but this is not mainly a stock bet.
MediaTek issued NVIDIA five-year convertible bonds with 0% interest. NVIDIA can later convert them into roughly 1.5% of MediaTek, but only at a price 15% above MediaTek’s current share price.
So what is NVIDIA really buying?
Overall, NVIDIA is spending $3.5B to make sure that even custom AI chips still live inside an NVIDIA-controlled AI factory.
MediaTek will help design custom AI chips for cloud companies, then connect those chips to NVIDIA’s NVLink system.
Companies like Google, Amazon and Microsoft increasingly want their own AI chips instead of buying only NVIDIA GPUs. NVIDIA cannot stop that. Its response is:
“You can build your own chip, but connect it to our networking, memory, software and server racks.”
That way, NVIDIA can still make money even when a customer replaces some NVIDIA GPUs with custom chips.
This also gives MediaTek a serious entry into the custom AI chip market. It now has cheap financing, NVIDIA’s technical support and a ready-made path into large AI data centers.
The companies to watch are Broadcom and Marvell, which already help cloud companies build custom chips. MediaTek is not taking their business tomorrow, but it is becoming a more credible competitor.
The bigger picture is, NVIDIA is trying to make NVLink the standard connection system for AI data centers. It does not need to manufacture every AI chip if it can control the infrastructure connecting all those chips together.
