AI data center investment is rapidly accelerating! What are the 3 late stocks? Major US companies have invested 4 trillion yen in Japan! High ROE, popular stocks
Along with advances in generative AI (artificial intelligence), etc.Demand for data centers is growing rapidlyDoing it.4 major US cloud companies such as Amazon Web Serviceshas announced investment plans related to data centers in Japan one after another since the beginning of this year,The total amount is 4 trillion yenIt goes up to. Recently, $KDDI (9433.JP)$But $Datasection (3905.JP)$, rice $Super Micro Computer (SMCI.US)$along with $Sharp (6753.JP)$At the site of the factory (Sakai City)Asia's largest data center compatible with AI processingIt was announced that it was aiming for construction. $NVIDIA (NVDA.US)$It is said that the most advanced GPU will be adopted.
Due to accelerated investment, it is expected that advanced semiconductor-related products, which are the heart of servers and communication devices, will be booming. It is a supplier of NVIDIA in the US leading AI semiconductors $Advantest (6857.JP)$Ya $Ibiden (4062.JP)$, of inspection equipment for servers $Micronics Japan (6871.JP)$We handle power semiconductors for data centers $Renesas Electronics (6723.JP)$Such stocks are likely to benefit greatly. This time the growth is self-evidentRelated stocks other than the semiconductor sector that are expected to rise in stock pricesI checked it out.
[Overview]
★pluralIt is a data center related stock with analyst coverage of, from current stock prices to average target stock pricesdivergenceIt's big and the futureRoom for improvementWhat is expected $Internet Initiative Japan (3774.JP)$、 $Nippon Telegraph & Telephone (9432.JP)$、 $Comsys Holdings (1721.JP)$。
★pluralIt is a data center related stock with analyst coverage of, from current stock prices to average target stock pricesdivergenceIt's big and the futureRoom for improvementWhat is expected $Internet Initiative Japan (3774.JP)$、 $Nippon Telegraph & Telephone (9432.JP)$、 $Comsys Holdings (1721.JP)$。
★ There is no coverage from securities analysts, but what is getting a lot of attention is the major independent data center $SAKURA Internet (3778.JP)$Equipment for iNet and data centers, which are top independent companies, is doing well $Sinko Industries (6458.JP)$. The 7-day closing price of Sakura Internet (5130 yen) is up to Morningstar's fair stock price (6188.24 yen)20.6% room for growthThere is.
★ From speculation that demand for optical fiber cables etc. for data centers will increase”Densha GosankeThere are already strong purchases in”. $Fujikura (5803.JP)$At the top $Furukawa Electric (5801.JP)$、 $Sumitomo Electric Industries (5802.JP)$All of them are analystsExceed the average target stock priceIt's being bought.
★ The world's top data center operator is the United States $Equinix Inc (EQIX.US)$. The company announced on 6/6 that it has opened a data center for major cloud service providers in Osaka. An AI-compatible data center is scheduled to be opened in Tokyo in September '24.
◆ $Internet Initiative Japan (3774.JP)$
Expectations for continuous high profit updates and a backlash
A pioneer in internet connection services. Our main focus is on corporate system construction, etc. $Nippon Telegraph & Telephone (9432.JP)$with $KDDI (9433.JP)$Both are the largest shareholders. Operation of data centers at home and abroad. A data center compatible with AI capable of supplying large electricity is being built in Chiba Prefecture. What is the fiscal year ending 25/3Expected to renew the highest profit for 5 consecutive termsHowever, the outlook is weaker than market expectationsSignificant declineDoing it. According to Bloomberg's predictions,YoY growth rate of operating profitWhat is the current term10%, next term18%expectations. There is room for increase from the 7-day closing price (2188.5 yen) to the average target stock price (3361.67 yen)53.6%There is a big discrepancy.
◆ $Nippon Telegraph & Telephone (9432.JP)$
Aiming for significant growth in the data center business
NTT Group holding company.3rd largest data center in the world. NTT DOCOMO's telecommunications business is the main force. The highest net profit is being updated. It also co-operates a data center with TEPCO. The medium-term management strategy aims to invest 1.5 trillion yen or more in the data center business by the end of fiscal year 27, and to more than double the EBITDA (profit before interest payment, before tax, depreciation and amortization) of the same business. Due to a slump in the regional telecommunications business, etc., the net profit forecast for the fiscal year ending 25/3 is expected to decrease drastically, with a 14% decrease from the previous fiscal year. Weak prospects are disgusted,Stock prices are looking for a lower price. There is room for increase from the 7-day closing price (150 yen) to the average target stock price (189 yen)26%。
Aiming for significant growth in the data center business
NTT Group holding company.3rd largest data center in the world. NTT DOCOMO's telecommunications business is the main force. The highest net profit is being updated. It also co-operates a data center with TEPCO. The medium-term management strategy aims to invest 1.5 trillion yen or more in the data center business by the end of fiscal year 27, and to more than double the EBITDA (profit before interest payment, before tax, depreciation and amortization) of the same business. Due to a slump in the regional telecommunications business, etc., the net profit forecast for the fiscal year ending 25/3 is expected to decrease drastically, with a 14% decrease from the previous fiscal year. Weak prospects are disgusted,Stock prices are looking for a lower price. There is room for increase from the 7-day closing price (150 yen) to the average target stock price (189 yen)26%。
◆ $Comsys Holdings (1721.JP)$
Data center infrastructure construction is going great
A major telecommunications construction company.activistEnglish known asSilchester International InvestorsIt holds a large amount of the company's shares. We are involved in the construction of large-scale data centers, air conditioning, electricity, emergency power, and security equipment. The main customer is the NTT Group. In the fiscal year ended 25/3, communication was still sluggish, but data center infrastructure construction etc. were going great. Actively engage in data center projects. There is room for increase from the 7-day closing price (3044 yen) to the average target stock price (3705 yen)21.7%。
Data center infrastructure construction is going great
A major telecommunications construction company.activistEnglish known asSilchester International InvestorsIt holds a large amount of the company's shares. We are involved in the construction of large-scale data centers, air conditioning, electricity, emergency power, and security equipment. The main customer is the NTT Group. In the fiscal year ended 25/3, communication was still sluggish, but data center infrastructure construction etc. were going great. Actively engage in data center projects. There is room for increase from the 7-day closing price (3044 yen) to the average target stock price (3705 yen)21.7%。
◆ $Kajima (1812.JP)$
One of the largest general contractors. It also handles data centers.Sakura InternetIshikari Data Center Building 3 was designed and constructed. They are also actively accepting orders for the Kyushu semiconductor factory plan. What is the ROE for the first semester10.2%. There is room for increase from the 7-day closing price (2663 yen) to the average target stock price (3074.29 yen)15.4%。
◆ $KDDI (9433.JP)$
Under the “Telehouse” brand name, we have developed data centers at over 45 locations in major cities in Japan and overseas. On 6/2, along with Sharp and others, the largest in AsiaBuilding a data center for AIIt was announced that discussions will begin. What is the ROE for the first semester12.3%. There is room for increase from the 7-day closing price (4263 yen) to the average target stock price (4859.24 yen)14.5%。
Under the “Telehouse” brand name, we have developed data centers at over 45 locations in major cities in Japan and overseas. On 6/2, along with Sharp and others, the largest in AsiaBuilding a data center for AIIt was announced that discussions will begin. What is the ROE for the first semester12.3%. There is room for increase from the 7-day closing price (4263 yen) to the average target stock price (4859.24 yen)14.5%。
◆ $Daikin Industries (6367.JP)$
Large air conditioning for data centers and factories is doing well. Invest over 30 billion yen in the US in '23Acquired 2 companies related to large-scale air conditioning for data centersDoing it. What is the ROE for the first semester10.7%. There is room for increase from the 7-day closing price (22470 yen) to the average target stock price (25713.33 yen)14.4%。
Large air conditioning for data centers and factories is doing well. Invest over 30 billion yen in the US in '23Acquired 2 companies related to large-scale air conditioning for data centersDoing it. What is the ROE for the first semester10.7%. There is room for increase from the 7-day closing price (22470 yen) to the average target stock price (25713.33 yen)14.4%。
◆ $Nidec (6594.JP)$
Server water chillers are a good material
On 4/15, it was built into a data center server,Increase production of water-cooled devices to cool image processing semiconductors (GPUs), etc.Then it was announced. Since demand for water cooling equipment with superior cooling performance over air cooling is expanding, Nidec expects the market size of related products to be 10 billion yen in fiscal 2023 and 80 billion yen or more in fiscal year 24. There is room for increase from the 7-day closing price (6996 yen) to the average target stock price (813.56 yen)16.2%。
◆ $SoftBank (9434.JP)$
Building a large-scale AI data center in Hokkaido
Simultaneously with the development of large-scale language models (LLM) that serve as substrates for domestically produced generated AI, development of AI data centers used to provide services will also proceed. The plan is to invest 65 billion yen to build Japan's largest AI data center in Hokkaido. The Ministry of Economy, Trade and Industry will subsidize up to 30 billion yen. The 7-day closing price (1946 yen) is almost at the same level as the average target stock price (1928.41 yen).
Building a large-scale AI data center in Hokkaido
Simultaneously with the development of large-scale language models (LLM) that serve as substrates for domestically produced generated AI, development of AI data centers used to provide services will also proceed. The plan is to invest 65 billion yen to build Japan's largest AI data center in Hokkaido. The Ministry of Economy, Trade and Industry will subsidize up to 30 billion yen. The 7-day closing price (1946 yen) is almost at the same level as the average target stock price (1928.41 yen).
◆ $Computer Engineering & Consulting (9692.JP)$
Housing services for GPU servers
Independent systems integrators. The main customer is the Toyota Group. We have data centers in Tokyo, Kanagawa, and Oita prefectures. We provide a housing (only rental rack, power supply, etc.) service that enables stable operation of GPU servers with high power consumption for AI and data mining. There is room for growth from the 7-day closing price (1,791 yen) to the target stock price for one analyst (2300 yen)28.4%and big. 7 daysCompany stock buybacksannounced.
Housing services for GPU servers
Independent systems integrators. The main customer is the Toyota Group. We have data centers in Tokyo, Kanagawa, and Oita prefectures. We provide a housing (only rental rack, power supply, etc.) service that enables stable operation of GPU servers with high power consumption for AI and data mining. There is room for growth from the 7-day closing price (1,791 yen) to the target stock price for one analyst (2300 yen)28.4%and big. 7 daysCompany stock buybacksannounced.
Related stocks other than those listed above: $Canon Marketing Japan (8060.JP)$、 $Nitto Boseki (3110.JP)$ 、 $Daiwa House Industry (1925.JP)$、 $SECOM (9735.JP)$、 $Minebea Mitsumi (6479.JP)$、 $Kandenko (1942.JP)$、 $SCSK (9719.JP)$、 $Kinden (1944.JP)$
(Postscript: summary)
The 3 stocks, which have a large divergence from the average target stock price, are in a situation where there is no idea that the decline will stop, but they have somehow maintained an upward trend on the monthly chart, and they seem relatively safe to hold on from a medium- to long-term perspective. The Internet Initiative has a high ROE, and Nippon Telegraph and Telephone has strong investment in AI-related initiatives, such as independent development of LLM (large-scale language models), and in optoelectronic fusion technology aimed at realizing optical semiconductors. COMSYS Holdings would like to look forward to dialogue with activists.
The 3 stocks, which have a large divergence from the average target stock price, are in a situation where there is no idea that the decline will stop, but they have somehow maintained an upward trend on the monthly chart, and they seem relatively safe to hold on from a medium- to long-term perspective. The Internet Initiative has a high ROE, and Nippon Telegraph and Telephone has strong investment in AI-related initiatives, such as independent development of LLM (large-scale language models), and in optoelectronic fusion technology aimed at realizing optical semiconductors. COMSYS Holdings would like to look forward to dialogue with activists.
―MooMoo News Kathy
Source: Bloomberg, Nihon Keizai Shimbun, IR materials from various companies, moomoo
Source: Bloomberg, Nihon Keizai Shimbun, IR materials from various companies, moomoo
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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