Goldman Sachs has upgraded nine Japanese electronic component and semiconductor stocks to buy ratings, citing robust demand for AI servers and data center infrastructure.
The bank’s Japan equity strategy team raised price targets and earnings forecasts for Ibiden, Murata Manufacturing, Taiyo Yuden, Renesas, Rohm, TDK, Kyocera, MinebeaMitsumi and Nidec, reflecting accelerating orders from hyperscale data centers and AI chip suppliers.
Ibiden’s electronics division operating margin guidance was lifted to 29.3% for the full year, up from 22.7%, driven by higher selling prices. CPU operating margins at its largest customer are projected to climb from just under 20% in the first quarter to nearly 30% by the fourth quarter. The company also set medium-term profit targets of ¥150 billion in fiscal 2028 and ¥300 billion or more in fiscal 2031, with potential for upward revisions at its second-quarter results.
Murata Manufacturing’s book-to-bill ratio for multilayer ceramic capacitors (MLCCs) reached 1.47x in the first quarter, while annual sales growth for AI and data center MLCCs was revised to 100–105%, up from 85–90%. Taiyo Yuden’s MLCC book-to-bill ratio hit 1.72x, utilization rates rose to 95% in the second quarter, and AI server sales growth was revised to 150%, from 80–85%. Despite missing first-quarter operating profit consensus, Taiyo Yuden raised its full-year guidance above forecasts.
Renesas is on track to exceed ¥300 billion in data center sales for fiscal 2026, an 85–90% year-over-year increase from slightly over ¥160 billion in fiscal 2025. Rohm’s first-quarter book-to-bill ratio stood at 1.2x, with utilization rates expected to reach 70% or more by September. TDK projected second-quarter operating profits could surpass ¥100 billion, while its annual sales guidance for industrial and UPS batteries used in AI and data centers was raised to roughly ¥150 billion, from about ¥110 billion.
Kyocera, MinebeaMitsumi and Nidec were also upgraded, with the latter’s focus on a securities filing due September 30 cited as a potential catalyst. Analysts noted upside potential in fiscal 2027 guidance for Kyocera and MinebeaMitsumi, driven by AI and data center components and revised return-on-equity targets.
