Nippon Chemical Industrial Co., Ltd. <4092> shares surged to their daily limit. Global AI datacenter construction and expansion investments are accelerating. Amid this trend, high-level demand has emerged for multilayer ceramic capacitors (MLCC) used in server- and communication board-bound AI semiconductors, driving up shares of global suppliers like Murata Manufacturing Co., Ltd. <6981>. Nippon Chemical supplies barium titanate for these MLCCs and has emerged as a prominent related play, attracting massive investment inflows. A large shareholding report filed by Nomura Asset Management on Friday revealed it holds a 5.44% combined stake in Nippon Chemical, partly for securities operations. Because this involves securities lending agreements, market strategists note that short-squeeze triggers may be accelerating the stock's rally.

TMH <280A> shares hit their daily limit-up on heavy buying. With supply struggling to keep pace with the rapid expansion of the generative AI market, upgrading semiconductor infrastructure like AI datacenters has become an urgent global priority. The company, which sells and repairs parts for semiconductor manufacturing equipment, has emerged as a fresh target for torrential investment inflows. Its business model is drawing keen attention, driven by its proprietary cross-border e-commerce platform specializing in semiconductors. According to a filing dated May 19, Simplex Asset Management has emerged as a major shareholder with a combined 16.01% stake. The investment purpose is stated as "pure investment" rather than activism, fostering expectations of further stock price gains.

MUSASHI SEIMITSU INDUSTRY CO.,LTD. <7220> shares rose sharply for a third straight day. Following NVIDIA's earnings announcement on Wednesday, preference for AI semiconductor-related stocks has strengthened. Musashi Seimitsu, an automotive parts manufacturer, is attracting interest for the growth potential of its hybrid super capacitor (HSC), an energy storage device for AI datacenters. Despite announcing post-market on May 12 that operating profit is expected to decline in the fiscal year ending March 2027, the stock demonstrated resilience to hit an all-time high on May 14. After a brief consolidation period, the stock triggered short covering amid renewed buying in AI-related shares following NVIDIA's results, driving the stock back to the 6,000 yen milestone.

KITAGAWA SEIKI CO.,LTD. <6327> shares hit their daily limit-up for consecutive days on strong supply-demand dynamics. The company holds a strong global competitive advantage in its core business of manufacturing and selling vacuum press machines for printed circuit boards. This is capturing server-bound AI semiconductor demand amid an AI datacenter construction boom, highlighting its clear earnings expansion. For the fiscal year ending June 2026, operating profit is expected to increase 30% year-on-year to 810 million yen, which the market views as conservative given its strong third-quarter progress. Some reportedly anticipate profit could exceed 900 million yen, potentially hitting a record high for the first time in 18 years since June 2008. On the supply-demand front, accumulated short selling through stock lending via multiple foreign brokerages, including Goldman Sachs, has fueled a short-squeeze rally.

Qualtec Co., Ltd. <9165> shares surged again, hitting fresh highs. The company primarily operates a reliability evaluation business for electronic devices, including semiconductors, and laser-based microfabrication. Both divisions are expanding, pushing business performance well ahead of initial projections. After the close on Friday, the company raised its operating profit forecast for the fiscal year ending June 2026 to 450 million yen from 405 million yen, a 17% increase year-on-year. Operating profit was already on track for a second straight year of record highs even before the upward revision. Backed by the strong performance, the company boosted its annual dividend by 10 yen to 47 yen from the previously planned 37 yen. Investment funds are pouring in to evaluate these enhanced returns. Although the stock surged at the end of last week, its market capitalization remains under 5 billion yen, keeping it in the ultra-small-cap category where a low margin-buying balance is amplifying its upward momentum.

Synspective <290A> shares accelerated gains, hitting fresh year-to-date highs for consecutive days. Before Monday's market open, the company announced the successful orbital insertion and antenna deployment of its ninth small SAR (Synthetic Aperture Radar) satellite, StriX, drawing heavy buying. The satellite was launched on Friday aboard U.S.-based Rocket Lab's Electron rocket. The company confirmed that test communications are normal and the satellite is fully controllable.

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Source: MINKABU PRESS

*Translated by generative AI. Click here for the original article.