Nvidia is putting $3.5 billion into MediaTek's convertible bonds, a big vote of confidence that sent the Taiwanese chip designer's shares limit-up and then higher again the next morning.

• MediaTek shares jumped almost 6% early, briefly passing the price at which Nvidia's bonds convert into stock.
• Sellers stepped in soon after, cutting the gain to under 3% on heavy trading — a sign the easy money has already been made.
• The deal ties the two chipmakers closer together and improves MediaTek's odds of landing more big cloud customers.
• Growth is expected to come first from AI phones, then custom chips for companies and smart-car systems.
• Foreign analysts see sales and profits growing sharply through 2028.

Outlook: The stock looks stretched near the conversion price in the short term, but the Nvidia partnership opens doors in cars and computing for years ahead.