Novatek reports stronger sales: Bernstein raises target for Novatek stock
Published on 10/21/2026 at 11:13 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSSales and valuation context
- Third-quarter revenue exceeded TWD 30.00 billion on October 11, 2026.
- Bernstein raised its target from TWD 480.00 to TWD 490.00 on October 9, 2026.
- Novatek stock was last at TWD 590.00 at 1:30 p.m. TST on October 21, 2026.
- Market capitalization stood at TWD 360.8 billion as of October 21, 2026.
Novatek Microelectronics (ISIN TW0003034005) reported third-quarter revenue above TWD 30.00 billion on October 11, 2026, while Bernstein raised its target from TWD 480.00 to TWD 490.00 on October 9, 2026. The two figures frame the stock's current debate: stronger chip sales against a valuation that already reflects improved expectations.
Revenue clears a key threshold
Industry Events, citing DIGITIMES, reported that Novatek delivered stronger September and third-quarter revenue as smartphone demand and edge artificial intelligence chips supported results. The report identified third-quarter revenue above TWD 30.00 billion, making the latest sales milestone the most recent company-specific event in the available record.
Novatek's second-quarter results provide the operating baseline. According to Yahoo Finance, second-quarter revenue was TWD 28.66 billion, up 23.80 percent from the first quarter and 9.60 percent from the year-earlier quarter. Net income reached TWD 6.33 billion, up 69.20 percent year over year.
What supports the margin?
Second-quarter gross margin reached 42.42 percent, above management's 38.00 percent to 41.00 percent guidance, while operating margin was 22.56 percent against guidance of 16.00 percent to 19.00 percent, according to Yahoo Finance. Management attributed the margin support to selling-price adjustments, product mix and lower inventory costs, but also pointed to higher material and packaging expenses.
Three dated stock developments
On August 6, 2026, Novatek reported second-quarter revenue of TWD 28.66 billion and net income of TWD 6.33 billion through its earnings call. On October 9, 2026, Bernstein raised its target from TWD 480.00 to TWD 490.00 while maintaining a Market Perform view, as reported by Moomoo. On October 11, 2026, Industry Events reported third-quarter revenue above TWD 30.00 billion as smartphone demand and edge AI chip activity improved.
Stock valuation stays demanding
Bernstein's TWD 490.00 target remains below the latest Taiwan quotation, underscoring the risk that weaker consumer electronics demand could limit the benefit from edge AI growth. Novatek's second-quarter inventory was TWD 13.31 billion, up 45.02 percent from the year-earlier quarter, adding a concrete counterweight to the revenue story.
Price and market value
Novatek Microelectronics was last at TWD 590.00 at 1:30 p.m. TST on October 21, 2026, on the Taiwan Stock Exchange. Its market capitalization was TWD 360.8 billion, while the 52-week range was TWD 352.00 to TWD 606.00 as of October 21, 2026.
Market context: Market report TAIEX.
