Nidec (6594) sees revenue boost from data centre motors and BESS demand
Nidec (6594) shares are advancing today, driven by market expectations for increased revenue and improved profit margins in its data centre HDD motor business, alongside growing demand for generators and battery energy storage systems (BESS). The Japanese industrial motor manufacturer's stock is trading at ¥2,845, a 3.5% rise from its previous close of ¥2,750. Further impetus came from reduced management uncertainty following personnel changes and revitalisation measures implemented after a third-party committee investigation report on March 3.
This upward movement occurs despite current analyst consensus ratings, which, while generally "Buy," set an average target price of ¥2,596, below yesterday's closing price of ¥2,750. The market's reaction suggests a rebound from previous overselling and a strong belief that the company's performance is bottoming out.
Today's gain extends a recent positive trajectory for Nidec, following a 5.5% increase on May 11. Expectations for a refreshed management structure and comprehensive business reforms appear to be prompting a market response that diverges from current analyst valuations.
Why Nidec's Outlook is Surpassing Analyst Expectations
Nidec is a Japanese industrial powerhouse, primarily known for its extensive range of electric motors. From the precision small motors used in hard disk drives for data centres to the powerful drive motors found in electric vehicles, the company’s products are integral to both industrial and consumer applications. Nidec also produces motors for generators and battery energy storage systems, capitalising on global trends in digitalisation and decarbonisation across its diverse customer base.
Today's upward movement in Nidec's stock stems from a significant re-evaluation by the market of its growth prospects, particularly in data centre HDD motors, where it is seeing increased revenue and improved profit margins, alongside renewed optimism for its generator and battery energy storage system businesses. This market sentiment suggests investors are factoring in a stronger future revenue structure and growth drivers than previously anticipated, with confidence bolstered by a management overhaul and recovery plan implemented after a third-party committee report on 3 March 2026.
This positive shift in market perception is clearly reflected in the share price. Nidec's stock is currently trading at ¥2,845, marking a 3.5% increase from yesterday's close of ¥2,750. This current price notably exceeds the average analyst target price of ¥2,596.
Consider a highly-regarded, long-established engineering firm that has recently undergone a leadership change and introduced innovative new product lines. While industry analysts might still be using older models to assess its value, the market, observing the new management's strategic direction and the early success of these new offerings, is already pricing in a much brighter future.
Nidec
Nidec Corporation (6594) is a Japanese industrial powerhouse, manufacturing a diverse range of motors, electronics, and optical components for global markets. Its extensive product portfolio spans medium and large-sized motors, precision motors, and motor-related units, alongside automotive components, mechanical and inspection equipment, and various electronic devices and sensors. These products find application across numerous sectors, including robotics, IoT, home appliances, logistics, agriculture, IT, office automation, mobile devices, healthcare, and industrial machinery. The company was established in 1973.