[Special Stock] Chips&Media Anticipates Orders from AI Chip Makers in China

Chips&Media is showing strength. It appears that securities firms' analysis, which expects an increase in orders toward AI chip makers in China, has had an impact.

As of 9:48 AM on the 19th, Chips&Media was trading at 16,340 KRW, up 480 KRW (3.03%) compared to the previous trading day.

Junyoung Park, a researcher at Hyundai Motor Securities, said, "Chips&Media has established a joint venture (JV) with a distributor in China and plans to actively supply AI chip makers in China through this JV. As the AI competition between the U.S. and China intensifies, China is expected to increase efforts to develop its own AI chips, and this geopolitical issue is likely to work favorably."

He added, "Chips&Media has a video codec license agreement for Qualcomm's AI PC chipset X-Elite, a global fabless company. Although currently only license revenue is generated for PC, it is necessary to monitor whether additional royalty agreements can be made for AI mobile chipsets in the future." He continued, "Sustained growth is expected due to the growth of the server AI chip market and the benefits from the growth of on-device AI."