Goldman Sachs Names 9 Top Japanese Semiconductor and Electronics Stocks

Goldman Sachs has identified nine Japanese semiconductor and electronic components stocks it believes are well positioned for growth, particularly as artificial intelligence and data center demand accelerates. The bank sees earnings upgrades, capacity expansion and improving profitability as key catalysts.

Ibiden tops the list with a Buy rating. Goldman expects the company could raise its medium-term targets and announce additional capacity. Electronics operating margin guidance has already increased from 22.7% to 29.3%, while strong AI server substrate demand helped Ibiden beat first-quarter fiscal 2026 expectations and lift its full-year outlook.

Murata Manufacturing is also rated Buy, with potential upside to second-quarter earnings and full-year guidance. Its MLCC book-to-bill ratio reached 1.47x, while expected annual growth in AI and data center MLCC sales was increased to 100%-105%.

Taiyo Yuden could see a rapid earnings recovery during the second and third quarters. Its MLCC book-to-bill ratio climbed to 1.72x, utilization is expected to reach 95%, and AI server sales growth expectations jumped to 150%.

For Renesas, Goldman highlighted expanding quarterly earnings and improving fiscal 2027 profitability. Data center revenue could exceed ¥300 billion in fiscal 2026, representing roughly 85%-90% year-over-year growth.

Rohm could deliver a significant full-year guidance upgrade as utilization improves. Its fiscal 2027 AI and data center sales forecast was raised to ¥30 billion from ¥25 billion.

TDK also has potential for a substantial upward revision after first-quarter results exceeded expectations. Industrial battery sales guidance increased to around ¥150 billion, driven largely by UPS battery demand from AI and data centers.

Goldman expects Kyocera to benefit from additional AI and data center-related component demand, alongside possible improvements to its ROE target. MinebeaMitsumi could see fiscal 2027 upside from bearings and motors while making progress toward its medium-term goals.

Finally, Nidec remains rated Buy, with investors focused on the company’s securities report filing due September 30.

Overall, Goldman’s selections highlight how Japan’s semiconductor and electronic components industry could increasingly benefit from the global AI infrastructure and data center investment boom.