Goldman Sachs Murata Mfg. (6981.T): MLCC Tightness and AI Power Supplies Confirmed as FY3/27 Earnings Drivers
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Goldman Sachs hosted a conference call with Murata Manufacturing, confirming that MLCC tightness and AI power supplies remain the primary earnings drivers for fiscal year 3/27. Capacity utilization for MLCCs used in AI servers is near full at approximately 95%, with planned capacity expansion of roughly 10% expected to be fully absorbed by AI server demand and increasing per-vehicle MLCC content driven by ADAS adoption. MLCC pricing is stabilizing from the second quarter of calendar 2026, though any price hike decisions will depend on demand sustainability, market share considerations, and industry supply management. Sales outlooks for RF modules and MetroCirc remain flat for FY3/27, with RF growth anticipated in FY3/28. Vertical power modules are positioned as the foundation for profitability in the power business this fiscal year, with next-generation products under consideration for the following year. Battery sales growth is constrained by the micro primary battery divestiture, though BBU growth supports ongoing profitability. Goldman Sachs maintains its Buy rating with Murata on the Conviction List, targeting 3,900 yen over twelve months, representing 12.3% upside from the current 3,473 yen share price. The bank believes the market has not fully priced in rising AI server power consumption and niche component tightness.