Goldman Sachs predicts surge in capacitor stocks driven by AI demand

The humble capacitor is having its moment. Goldman Sachs is betting that multi-layer ceramic capacitors, the tiny components that regulate electrical flow in basically every piece of modern electronics, are about to become one of the hottest plays in the AI supply chain.

Following a May 27 meeting between Goldman analysts and Murata Manufacturing President Norio Nakajima, the bank issued a “Buy” rating on Murata and placed the stock on its Conviction List with a target price of ¥5,400, roughly $33.88.

The AI capacitor thesis

Previously, the consensus view was that the MLCC industry upcycle would peak around 2028. Goldman now projects it extending to approximately 2030. In an industry where cycles typically run three to four years, adding two more years of growth is a meaningful revision.

Who benefits

Murata Manufacturing is the obvious headline name here. The Japanese company is the world’s largest MLCC manufacturer. Goldman’s decision to place Murata on its Conviction List signals more than routine optimism.

Goldman also set a new price target for Nantong Jianghai Capacitor at RMB39.20, highlighting that the opportunity extends across the broader electronic supply chain. Nantong Jianghai, a Chinese capacitor manufacturer, stands to benefit from the same tailwinds, particularly in power management applications that are central to AI hardware.

Why capacitors matter more than you think

MLCCs are one of those components that rarely make headlines but show up everywhere. A single smartphone contains roughly 1,000 of them. A modern electric vehicle uses several thousand more.

The MLCC market has historically been cyclical, with periods of oversupply driving prices down and periods of shortage sending them sharply higher. The last major supply crunch hit in 2017-2018, when automotive and smartphone demand collided and lead times stretched to months.

What this means for investors

For investors, Murata trades primarily on the Tokyo Stock Exchange, and Nantong Jianghai on the Shenzhen exchange. Access can be more complicated than buying a Nasdaq-listed chip stock.

The competitive landscape adds another layer. While Murata dominates MLCCs, Samsung Electro-Mechanics and TDK Corporation are significant players.

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