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Kabu Japan Notes
Kabu Japan is a newsletter focused on Japanese equities. We provide independent, insightful analysis of Japan's stock market, highlighting opportunities across large-cap, mid-cap, and small-cap companies.
Disclaimer: This newsletter is for informational purposes only and does not constitute financial advice. I may hold positions in securities mentioned. Investing involves risk, including currency fluctuations and market volatility. Please conduct your own research or consult a qualified financial adviser before making investment decisions.
Latest ArticleKabu Japan · Sep 1, 2026
Taiyo Yuden: The High-Beta Bet on Downstream AI
This week's note argues that as headline AI enthusiasm cools, the underlying infrastructure cycle keeps intensifying — specifically the rising electrical complexity of AI servers, which is driving explosive demand for multilayer ceramic capacitors (MLCCs). AI servers require roughly 10,000-12,000 MLCCs against 4,000-5,000 in conventional servers and 800-1,000 in smartphones, and Murata estimates AI-server MLCC demand could reach around 3.3 times FY2025 levels by FY2030. Murata, the recognised market leader, put AI at only around 5% of sales as of December 2024, leaving the more interesting question of leverage to smaller players. The piece argues Taiyo Yuden offers greater earnings leverage than Murata to this shift, since the thesis isn't simply AI demand translating into more capacitors, but rising electrical complexity pushing customers toward a higher-value capacitor mix that carries better pricing power and operating leverage — echoing how unglamorous component suppliers outperformed during the late-1990s tech buildout.
Read the full analysis on Kabu JapanDisclaimer: This newsletter is for informational purposes only and does not constitute financial advice. I may hold positions in securities mentioned. Investing involves risk, including currency fluctuations and market volatility. Please conduct your own research or consult a qualified financial adviser before making investment decisions.
Archive
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From Domestic Compounders to Global PlatformsJapan's re-rating is shifting focus from domestic compounders toward globally scalable platform businesses.Jun 26, 2026Sony: A Play on Japan's Global IP StorySony stands out as the clearest way to invest in Japan's growing global entertainment and IP content boom.Jun 23, 2026Japan Real Estate RevitalizationJapan's real estate revitalization is a market theme investors have largely overlooked until now.Jun 19, 2026Toyota (7203): The Company Japan Just Forgot AboutDespite its scale, Toyota has become an overlooked name, with the market seemingly forgetting about the stock.Jun 18, 2026Murata: The AI Infrastructure Trade Still Has LegsMurata (6981 JP) shows why its recent re-rating still has room to run within the broader AI infrastructure trade.Jun 16, 2026Asahi Glass: The Next Micron?Asahi Glass's specialty materials position it as an overlooked potential winner of the memory chip cycle.Jun 15, 2026Canon: The Next ASML?Canon's lithography and 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AdvantageJapan's textile trade shows how mastering repetitive craft can become a hidden infrastructure advantage.Jan 25, 2026Kabu Japan Weekly: Japan's Stress TestBond market pressure is putting Japan through a real stress test, with implications across equities and policy.Jan 18, 2026Kabu Japan: Japanese Equity Market WeeklyA weekly look across Japan's equity market, balancing near-term action with a longer-term investment vision.
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