Morningstar analyst Phelix Lee discusses NVIDIA's (NVDA, Financial) recent announcement by CEO Jensen Huang at CES 2025. The company will launch its latest AI supercomputer, Project DIGITS, in May, with prices starting at $3,000. This new product features the GB10 Grace Blackwell super chip, jointly developed with MediaTek.
Reports indicate that MediaTek is expanding its partnership with NVIDIA, which could lead to a more optimistic market outlook for MediaTek in the PC sector, where it aims to penetrate over 200 million units. Despite this potential, Morningstar cautions that the product's high pricing and developer-focused target audience might limit sales. Consequently, it is too early to predict the profitability it could bring to MediaTek.
Investors are advised to monitor whether MediaTek will introduce consumer-oriented products in the next year or two.
