Mediatek Poised for Positive Growth in 2014

24 Mar

Analysts from Barclays Capital believe the earnings prospects of Taiwan based chip manufacturer, Mediatek, to be highly positive in 2014, and are generally “upbeat” about its future shipments, according to a recent article from Focus Taiwan News Channel.

As stated in the article…

“In a recent research note, Barclays said it expects the compound annual growth rate of MediaTek’s earnings per share in 2014-2015 will range between 17 percent and 19 percent…The brokerage said MediaTek’s EPS could stand at NT$28.11 (US$0.92) and NT$30.09 in 2014 and 2015, respectively, compared with NT$20.51 recorded in 2013.”

According to Focus Taiwan, the general optimism displayed by Barclays towards Mediatek is based mostly on the recent efforts by China Mobile to push for the sales of “low cost 4G smartphones,” and in part to the potential success of Mediatek’s MT6595 chip, which is being used in major smartphone devices such as Xiaomi’s Hongmi Note.

Andrew Lu, a principal analyst from Barcalys, noted further that the MT6595 will account for more than 20% of the company’s overall chip sales, and allow the company’s shipments to become even more impressive.