Lynx Equity grows bullish on Nvidia after $3.5B MediaTek investment

Nvidia just wrote a $3.5 billion check to MediaTek, and at least one research firm thinks that’s a very good sign for the stock. Lynx Equity has reiterated its bullish stance on Nvidia, setting a price target of $250 following the chipmaker’s announcement of its largest-ever investment outside the United States. The deal, structured as convertible bonds issued by Taiwanese semiconductor giant MediaTek, signals a deepening alliance between two companies that increasingly view edge AI as the next major growth frontier. The deal and why it matters Nvidia’s $3.5B investment is part of a broader $3.9 billion fundraising effort from MediaTek. The funds are earmarked for bolstering MediaTek’s data center and AI development capabilities. MediaTek’s stock responded predictably. Shares surged roughly 10% following the announcement, building on what has already been a monster year for the company, with gains approaching 200% year-to-date. Nvidia CEO Jensen Huang framed the partnership in characteristically grand terms, calling it a “10-year plan.” He was also careful to push back on a specific concern that has dogged several AI-adjacent deals: the specter of circular financing, where a compan...