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MediaTek stock rating downgraded to Hold by HSBC on competition concerns

Published 23/09/2025, 11:22
MediaTek stock rating downgraded to Hold by HSBC on competition concerns
2454
-2.63%

Investing.com - HSBC downgraded MediaTek Inc. (TPE:2454) (OTC:MDTKF) from Buy to Hold on Tuesday, while reducing its price target to TWD1,417.00 from TWD1,640.00.

The downgrade reflects HSBC’s concerns about increasing competition in the smartphone system-on-chip (SoC) market and rising costs for the semiconductor company, particularly affecting its 2026 outlook.

While HSBC maintained its earnings per share (EPS) forecast for fiscal year 2025, it cut its 2026 EPS estimate by 14% to TWD70.83, which now sits 12% below consensus expectations.

HSBC cited delayed contribution from MediaTek’s application-specific integrated circuit (ASIC) business as a key factor in the downgrade, noting this had previously been a major catalyst for its Buy rating.

The new price target of TWD1,417.00 is based on an unchanged 2026 target price-to-earnings (PE) ratio of 20x applied to HSBC’s revised 2026 EPS estimate, implying a 1.6% downside to MediaTek’s current share price.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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