Fair value rises 13 percent for Novatek stock

Published on 10/08/2026 at 11:51 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Fair value rose 13.00 percent to TWD 537.00 on September 8, 2026. Novatek stock posted TWD 28.66 billion in second-quarter 2026 revenue.

Novatek, TW0003034005, Illustration mit AI erstellt.

Novatek Microelectronics Corporation (TW0003034005) was assigned a fair value of TWD 537.00 after a 13.00 percent increase on September 8, 2026. As Simply Wall St reported, the analyst consensus estimate moved higher as revenue, margin and valuation assumptions were updated.

Revenue growth meets cost pressure

Novatek reported TWD 28.66 billion in revenue for the second quarter of 2026, an increase of 23.80 percent from the first quarter. According to Yahoo Finance, gross margin reached 42.42 percent, compared with the second-quarter guidance range of 38.00 percent to 41.00 percent.

Operating income came to TWD 6.47 billion in the second quarter, up 60.50 percent quarter over quarter, while net income reached TWD 6.33 billion, up 68.00 percent. The same earnings-call transcript said higher memory and packaging costs were lifting input expenses, while pricing adjustments and a richer system-on-chip mix supported profitability.

Third-quarter range sets the test

Management guided for third-quarter 2026 revenue of TWD 30.00 billion to TWD 31.20 billion, with gross margin of 38.50 percent to 41.50 percent and operating margin of 19.00 percent to 22.00 percent, according to Yahoo Finance. The range places the next test on whether Edge AI vision products and smartphone inventory replenishment can offset softer panel demand.

That balance matters because the second-quarter system-on-chip business accounted for 52.00 percent of revenue, up from 44.00 percent in the first quarter. For investors, the combination of higher mix and rising component costs is more important than the headline revenue increase alone.

Taiwan quote stays inside yearly range

On the Taiwan Stock Exchange, Novatek was last at TWD 531.00 at 1:30 p.m. TST on October 8, 2026, up 0.38 percent from TWD 529.00. The quote stood within a 52-week range of TWD 352.00 to TWD 606.00, while market capitalization was TWD 323.1 billion on the same date.

The company describes itself as a display driver IC and system-on-chip supplier serving digital devices, according to its Novatek website. Its valuation now depends on whether the 13.00 percent fair-value increase is supported by the third-quarter revenue range and sustained margins.