[Click eStock] "MDS Tech, Earnings Expected Due to Increased Nvidia AI Demand"
Hanyang Securities analyzed on the 10th that MDS Tech's performance is expected to steadily increase due to the growing demand for NVIDIA's artificial intelligence (AI) chips. No investment opinion or target price was provided.
MDS Tech is a company that provides solutions and platforms necessary for the overall process of developing embedded systems. An embedded system is an electronic system that enables specific functions within electronic devices.
Lee Jun-seok, a researcher at Hanyang Securities, said, "MDS Tech signed a partnership with Microsoft for Windows Embedded in 1998," adding, "In addition, it exclusively distributes the platform Mobilgin developed by Hyundai AutoEver in Korea, so it is expected to benefit from the increasing demand for platforms installed in electric vehicles."
He continued, "In June 2018, MDS Tech formed an AI solution integrated supply partnership with NVIDIA and currently holds the exclusive distribution rights for AI modules in Korea," explaining, "Since 2023, sales related to AI modules have started in earnest, and recently, following NVIDIA's performance and stock price rise, MDS Tech's stock price has also shown a meaningful trend."
He stated, "The demand for MDS Tech's embedded development solutions will increase as the industry advances," and added, "They have proactively prepared for the development of future industries such as AI, smart cars, and IoT by forming partnerships both domestically and internationally."
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The researcher emphasized, "Due to the increase in vehicle embedded systems driven by the spread of electric vehicles and the growing demand for NVIDIA's AI chips, the company's performance will steadily improve," and stressed, "Since MDS Tech's solutions have penetrated most of the currently spotlighted future themes, the stock price is also expected to rise in the future."
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