MediaTek Inc. (2454.TW): 3Q26 revenue beats guidance on SoC pull-ins; TPUv8t ramping in 4Q, while v9 should tape out as scheduled

We remain Overweight on MediaTek with a Jun-27 PT of NT$5,600. MediaTek Sep revenue came in at NT$55.4bn, up 2% YoY and down 14% MoM. 3Q26 sales reached NT$168bn, up 10% QoQ and 18% YoY, ahead of JPMe/consensus by ~8% and surpassing the high end of guidance by ~5% (guidance NT$152.2-159.8bn), driven by smartphone pull-in ahead of planned SoC price increases and a small contribution from initial TPUv8t shipments. GMs are expected around the mid-point of guidance (JPMe 46%, company guided 44.5%-47.5%). For 4Q26, we expect revenue up 35%+ QoQ as TPUv8t revenues start to flow through, with GMs down 1.5ppts QoQ to 44.5% and FY26 GMs at 45.6%. MediaTek's TPUv8t Zebrafish continues to ramp on schedule at TSMC and remains on track to generate $2bn+ in revenues in 2026;