Murata
6981.TLOWSatellite · Weight: 5%· Data as of 2026-05-19
Investment Thesis
AI revenue already 10% of total and growing 25-30% CAGR. New uPOL power modules specifically for AI GPU power delivery. MLCCs and passive components for datacenter power systems. PE 37.9x is expensive but AI revenue acceleration could justify re-rating. Diversified base (batteries, sensors, storage) provides stability while AI segment scales.
Risk
1) PE 37.9x with 8.0% ROE — overvalued on current fundamentals. 2) AI is only 10% of revenue — takes years to become dominant. 3) Battery segment facing EV headwinds. 4) Competition from Murata in AI server passives.
Monitoring Trigger
If AI segment exceeds 15% of revenue at next earnings, ADD to 7%. If uPOL wins design slots at NVIDIA/AMD, ADD to 7%. If PE expands beyond 45x without AI acceleration, TRIM to 3%.
Update History
Initial DD
Cross-update from EV evolve: FY2025 beat + FY2026 OP +34.8% guidance. Power module mass prod 2026.
Key Metrics
Supply Chain Evidence
| Evidence | Customer | Product | Detail |
|---|---|---|---|
| confirmed | NVIDIA / AI server OEMs | MLCCs and uPOL power modules for AI GPU servers | Murata holds up to 70% share in AI server MLCCs; each AI server uses 20,000-30,000 MLCCs. uPOL power modules for AI GPU power delivery launching 2026 (TrendForce Feb 2025, Dec 2025)[source](2025-01) |
| confirmed | Apple | MLCCs for iPhone and consumer electronics | Murata supplies MLCCs to Apple devices; strong pull-ins for Apple's new devices noted alongside AI server demand (Leonardo Boquillon MLCC analysis, TrendForce)[source](2025-01) |
| probable | Hyperscale datacenter operators (AWS, Google, Microsoft) | High-capacitance MLCCs and passive components for server power systems | Murata holds 40%+ global MLCC market share; AI server MLCC demand projected 3.3x by FY2030 (Murata Q3 FY2026 earnings, Macro-Ops analysis) |
Sources & References
Peer Comparison
| Company | PE | Fwd PE | ROE | Op Margin | FCF |
|---|---|---|---|---|---|
| Fujikura Ltd | 14.1 | 14.2 | 27.7% | 16.6% | N/A |
| Ibiden | 112 | 62 | 11.5% | 14.5% | -¥100B |
| TDK CORP | 26.95 | 21.16 | 10.0% | 10.9% | +¥105B |
| RESONAC HOLDINGS CORPORATION | ~40x fwd | 40.4 | ~8.5% (est. FY2026) | ~18.2% EBITDA (Q1 FY2026) | +¥43B |
| Tokyo Ohka Kogyo | 31.3 | N/A | 15.6% | 20.5% | N/A |
| Nitto Denko Corporation | 15.82 | 11.35 | 12.2% | 17.9% | +¥84.7B |
| JCU Corporation | 19.9 | N/A | 17.2% | 41.0% | N/A |
| Murata | ~49.7x TTM (fwd ~37x on FY2026 guidance) | 35.8 | 8.0% | 14.8% | +¥165B |