MediaTek locked at its daily limit-up in Taipei, a strong signal for AI chip investors as Nvidia deepens its partnership with the Taiwanese chip designer.

• MediaTek jumped 10% to the limit after word spread that Nvidia and other AI infrastructure partners bought most of its $3.9 billion overseas convertible bond.
• MediaTek has secured licenses to Nvidia's NVLink and NVHBM technology, strengthening its pitch for big cloud provider orders.
• Custom AI chip work is booming — TPU-related back-end testing starts ramping in September, offsetting weak consumer electronics demand.
• The whole Taiwan market rallied, with the index pushing past 47,000 and the Taiwan dollar strengthening after dovish Fed signals knocked the dollar index below 99.
• Passive component maker Walsin Technology also spiked more than 8% as money rotated into cheaper stocks with pricing power.

Outlook: Analysts expect MediaTek's fourth quarter to be strong as cloud and CPU demand converge at year-end.