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Nihon Dempa surges on AI data center demand for crystal devices, eyeing blue-sky territory
Nihon Dempa Kogyo Co., Ltd. <6779> surged sharply, forming a large bullish candlestick and significantly updating its year-to-date high. The mid-1,900 yen level has served as a resistance line in the market since 2021, and the stock price temporarily slowed at this critical juncture. However, large-scale buying has been observed during pullbacks. As a specialized manufacturer of crystal devices including crystal oscillators and crystal equipment, Nihon Dempa boasts world-class technological capabilities and market share. With demand for optical transceivers?which convert electrical signals to optical signals and vice versa?continuing to surge for AI data centers, revenue opportunities are expanding for the company's crystal products, which are essential components for optical transceivers. The company has entered mass production. If the stock extends gains into the upper 1,900 yen range, accumulated trading volume becomes sparse, potentially accelerating upward momentum in what would effectively be uncharted territory.
Source: MINKABU PRESS
*Translated by generative AI. Click here for the original article.
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