Core Viewpoint - Nvidia is set to resume sales of its H20 GPU in China and has announced a new fully compatible GPU, the NVIDIA RTX PRO, aimed at digital twin AI for smart factories and logistics [1][2]. Group 1: Nvidia's Product Developments - Nvidia has submitted an application to the US government to resume sales of the H20 GPU, which is designed specifically for the Chinese market and complies with US export restrictions [1]. - The H20 GPU is based on Nvidia's Hopper architecture and utilizes advanced CoWoS packaging technology [1]. - The newly announced NVIDIA RTX PRO GPU is positioned as an ideal choice for creating digital twin AI solutions in smart factories and logistics [1]. Group 2: Government Relations and Events - The US government has assured Nvidia that it will grant the necessary licenses for the resumption of H20 GPU sales [1]. - Nvidia's CEO Jensen Huang is confirmed to attend the opening ceremony of the third China International Supply Chain Promotion Expo on July 16 [2].

Investment Rating - The report assigns a positive outlook for MediaTek, indicating a potential for growth in the upcoming quarters, particularly in the AI and mobile sectors [2][3]. Core Insights - MediaTek's Q1 2025 revenue reached NT$153.3 billion, showing a quarter-over-quarter increase of 11.1% and a year-over-year increase of 14.9%. Operating profit was NT$30.1 billion, with a net profit of NT$29.5 billion [2][7]. - The demand recovery in mainstream and entry-level markets has driven growth in the mobile business, with expectations for further market share and average selling price (ASP) increases with the upcoming flagship SoC launch [2][14]. - MediaTek is collaborating with NVIDIA to target the AI ASIC market, projecting AI ASIC revenue to reach $1 billion by 2026 [3][28]. Summary by Sections Overall Performance - In Q1 2025, MediaTek achieved a revenue of NT$153.3 billion, with operating profit at NT$30.1 billion and net profit at NT$29.5 billion. The gross margin was 48.1%, reflecting a slight decline from the previous quarter and year [7][14]. Business Segmentation - **Mobile Business**: Contributed 56% to total revenue, with a 6% increase year-over-year and quarter-over-quarter, driven by demand recovery in mainstream and entry-level markets [14]. - **Intelligent Edge Platform**: Accounted for 39% of total revenue, showing a 32% year-over-year and 23% quarter-over-quarter increase, benefiting from upgrades in connectivity technology and AI applications [15]. - **Power IC Business**: Made up 5% of total revenue, with a 7% year-over-year increase but a 9% quarter-over-quarter decline [16]. Performance Guidance - For Q2 2025, MediaTek expects revenue to be between NT$147.2 billion and NT$159.4 billion, with a projected gross margin of 47% (±1.5 percentage points) [17][18].