Novatek Microelectronics stock reports strong Q2 growth
Published on 09/30/2026 at 19:41 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS
Novatek Microelectronics stock is backed by a sharp second-quarter operating improvement, with revenue of TWD 28.66 billion in Q2/2026, up 23.80 percent quarter over quarter and 9.60 percent year over year. The company also guided for Q3 revenue of TWD 30.00 billion to TWD 31.20 billion, keeping growth expectations firmly tied to Edge AI vision chips and smartphone inventory demand.
Margins beat the Q2 guide
According to Yahoo Finance in the Q2/2026 earnings transcript dated August 6, 2026, gross profit reached TWD 12.16 billion and gross margin was 42.42 percent. That margin exceeded the company's guidance range of 38.00 percent to 41.00 percent and stood 6.12 percentage points above Q2/2025.
Operating income rose to TWD 6.47 billion, an increase of 60.50 percent quarter over quarter and 34.10 percent year over year. Net income reached TWD 6.33 billion, up 68.00 percent from the prior quarter and 69.20 percent from the year-earlier period, while EPS increased to TWD 10.40.
Q3 brings growth and cost pressure
Yahoo Finance reports that management expects Q3 gross margin of 38.50 percent to 41.50 percent and operating margin of 19.00 percent to 22.00 percent. The range is below the 42.42 percent Q2 gross margin, reflecting higher wafer, packaging, testing and memory costs.
The product mix remains important. SoC products accounted for 52.00 percent of Q2 revenue, up from 44.00 percent in Q1/2026 and 37.00 percent in Q2/2025. Management expects small and medium driver IC revenue to increase sequentially, while large driver IC revenue is expected to decline as panel production softens.
Stock remains below yearly high
Novatek Microelectronics was last at TWD 546.00 on its Taiwan listing on September 30, 2026 at 1:30 p.m. Taiwan time. The price stood TWD 60.00 below the 52-week high of TWD 606.00 and TWD 194.00 above the 52-week low of TWD 352.00.
Market capitalization was TWD 332.2 billion on September 30, 2026. For investors, the central question is whether Edge AI growth and smartphone replenishment can offset rising input costs as the company moves from the 42.42 percent Q2 gross margin toward its 38.50 percent to 41.50 percent Q3 range.
Novatek Microelectronics key facts
- Company: Novatek Microelectronics Corp.
- ISIN: TW0003034005
- Ticker: 3034
- Price on Taiwan listing: TWD 546.00 as of September 30, 2026, 1:30 p.m. Taiwan time
- Market capitalization: TWD 332.2 billion as of September 30, 2026
- 52-week range: TWD 352.00-TWD 606.00 as of September 30, 2026
- Sector / Industry: Technology / Semiconductors
