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Novatek Microelectronics Corp. (3034) AI Stock Analysis

TW:3034

Novatek Microelectronics Corp.

(TWSE:3034)

Select Model
Rating:72Outperform
Price Target:TWD 550.00â–²(14.35% Upside)
Action:initiatedcoverage
Date:11/10/26

Strong financial position driven by exceptional balance sheet and reliable cash flows, along with attractive valuation, are the primary positive factors; short-term technical weakness provides a partial offset.

Positive Factors
Very low leverageMinimal debt materially reduces financial risk through semiconductor cycles and preserves flexibility for investment, dividends, or other capital allocation. A conservative balance sheet also gives Novatek greater resilience if demand weakens or profitability remains below prior peak-cycle levels.
Negative Factors
Cyclical earnings normalizationThe recovery has not restored Novatek to its earlier peak revenue and profit levels, showing that earnings remain exposed to semiconductor and display-market cycles. This can limit the durability of near-term growth and make future results sensitive to demand normalization across end markets.

Novatek Microelectronics Corp. (3034) vs. SPDR S&P 500 ETF (SPY)

-10%0%10%20%30%40%50%60%TW:3034+27.65%SPY+14.30%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
TWD 286.19B
Dividend Yield
4.78%
Average Volume (3M)
3.53M
Price to Earnings (P/E)
14.6
Beta (1Y)
0.60
Revenue Growth
2.41%
EPS Growth
13.76%
Country
TW
Employees
3,253
Sector
General
Sector Strength
55
Industry
Semiconductors

Novatek Microelectronics Corp. Business Overview & Revenue Model

Company Description

Established in 1997 and headquartered in Hsinchu, Taiwan, Novatek Microelectronics Corp. is a global enterprise dedicated to the research, development, production, and sale of integrated circuit solutions. The company's comprehensive product line inc...

Novatek Microelectronics Corp. Financial Statement Overview

Summary

Strong balance sheet with minimal debt and solid cash flow conversion support performance, while income statement shows moderated profitability amid semiconductor market pressures.

Income Statement

68Positive

Balance Sheet

94Very Positive

Cash Flow

77Positive
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue105.60B100.66B102.79B110.43B109.96B135.37B
Gross Profit40.98B36.68B41.47B46.21B50.94B67.39B
EBITDA22.13B19.56B25.44B29.58B35.75B49.24B
Net Income19.86B16.35B20.34B23.32B27.97B38.87B
Balance Sheet
Total Assets112.91B97.37B102.40B104.44B100.55B120.59B
Cash, Cash Equivalents and Short-Term Investments40.56B42.42B49.05B53.89B51.48B61.67B
Total Debt549.07M552.29M454.93M373.14M207.89M247.50M
Total Liabilities37.75B29.63B34.48B37.23B34.98B50.14B
Stockholders Equity75.16B67.74B67.92B67.22B65.57B70.45B
Cash Flow
Free Cash Flow14.77B12.50B15.10B28.82B21.53B40.34B
Operating Cash Flow16.12B13.71B16.65B29.98B22.69B41.72B
Investing Cash Flow-1.22B-1.33B-848.94M-1.70B-2.87B-8.41B
Financing Cash Flow-14.08B-18.73B-20.96B-23.55B-30.81B3.95B

Novatek Microelectronics Corp. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

TW:3034 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
TW:5269TW:526981OutperformTWD 83.43B12.10―3.80%5.30%51.53%
TW:3006TW:300677OutperformTWD 64.15B3.45―0.43%272.74%―
TW:3034TW:303472OutperformTWD 292.00B14.61―4.78%2.41%13.76%
TW:5274TW:527467NeutralTWD 495.40B84.57―0.58%62.91%66.83%
TW:6526TW:652663NeutralTWD 114.91B38.14―1.86%9.57%7.98%
TW:8299TW:829963NeutralTWD 370.45B4.99―1.34%248.23%1001.73%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%

* General Sector Average

Performance Comparison

0%100%200%TW:3034TW:3006TW:5269TW:5274TW:6526TW:8299Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
TW:3034 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
TW:3034Novatek Microelectronics Corp.481.00107.5528.80%
TW:3006Elite Semiconductor Microelectronics Technology Inc.235.00142.04152.79%
TW:5269Asmedia Technology Inc.1195.00-35.80-2.91%
TW:5274ASPEED Technology, Inc.12555.007157.17132.59%
TW:6526Airoha Technology Corp.726.00278.9762.41%
TW:8299Phison Electronics Corp.1730.00486.0639.07%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 09, 2026