00:00We're now at least three years into this AI boom, which has made stocks like Nvidia's
00:05among the hottest on the U.S. market.
00:08We just saw Nvidia's stock slip after its conference keynote.
00:13Where are we now in terms of investor confidence in the sector?
00:17There's a lot of economic uncertainties that are mostly caused by tariffs.
00:22People are still very closely paying attention on what's the Fed going to do, what's the
00:27just broader macroeconomics.
00:29I think that's the number one thing, because you create a lot of uncertainty that's sort
00:33of like undermine the market confidence.
00:36And the second thing, a more analyst like us, like the concern we are seeing from the
00:41investors is like, hey, like why there's orders cut on the co-ops for TSMC, why there's a
00:47cut for the orders of GPUs, right?
00:50People will start like speculating, well, like is it this AI demand will continue to
00:53moving forward?
00:54We're seeing other giants invest in their AI chips.
00:58Google is reportedly breaking away from working exclusively with Broadcom on its AI chips
01:03and is preparing to work with Taiwan's MediaTek on its next generation.
01:09What do you make of this strategy?
01:11So MediaTek, this is a company, they design chips for not just smartphones, but also for
01:16automotive, but also for AIoT and other network technology.
01:21The cooperation with Google, it's actually been speculated for quite a while in the market.
01:27Part of that, I think Google just thinking about like, oh, like, OK, we work with Broadcom,
01:32we work very well, we have great partnership, but we also want sort of like alternative
01:37suppliers because you don't want to have just one supplier because it will be hard to negotiate
01:42a price.
01:43Right.
01:44MediaTek is a very interesting company.
01:45They are the company, the best IC design company based in Taiwan.
01:49But if you look at their revenue portfolio by region, I think 80 to 90 percent, it's
01:54actually from China.
01:55So a big part of that is from the smartphone, right?
01:58They're providing chips to companies like Vivo, OPPO, like Xiaomi, those phones like
02:04Taiwanese typically don't use, but it's actually they have tons of users in China.
02:10Well, given their sizable customer base in China, what does the U.S.'s ongoing tech competition
02:16with China mean for MediaTek and its shift towards the AI business, especially now with
02:22Trump back in office?
02:24The U.S. is actually worried more when it comes to like MediaTek designing the chips,
02:31because think about that, like imagine MediaTek, if, I mean, if they design AI chips for China,
02:38right?
02:39And they are one of the best IC design company.
02:42So if that's the case, I think that's the thing the U.S. would be have extreme concern.
02:48And right now they just design the chips for the normal smartphone.
02:51So it's not, I think for now, I don't see my major risk for MediaTek.
02:55And I'm sure the company, to my understanding, they have been paying very close attention
03:01on a regulatory change from the White House or Department of Commerce in Washington.
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