Nvidia is putting $3.5 billion into MediaTek convertible bonds, its first-ever investment in a Taiwanese company — a strong positive for MediaTek shareholders and Taiwan's AI chip sector.

• Nvidia took nearly 90% of MediaTek's convertible bond offering, its biggest bet yet on an AI partner.
• MediaTek shares hit the daily limit-up at the open and stayed locked there all day.
• The tie-up should improve MediaTek's odds of landing second and third big cloud customers for its custom AI chips.
• Foreign brokers kept "buy" ratings and see MediaTek's 2028 custom-chip revenue heading higher.
• The company is shifting from a phone chip maker into an AI computing platform supplier feeding Nvidia's server ecosystem.

Outlook: The payoff will take time to show up in results, but MediaTek is now positioned as a core Nvidia partner in custom AI silicon.