Murata Manufacturing (6981) advances on share buyback and AI demand forecast
Murata Manufacturing Co., Ltd. shares advanced on Thursday, driven by a new share buyback programme and a positive forecast for artificial intelligence-related demand. The Japanese electronics component manufacturer's stock, trading under symbol 6981, is up 4.5% at ¥6,443 on 21 May 2026.
The company announced its buyback plan on 30 April, committing ¥150 billion to repurchase 4.12% of its outstanding shares. Murata also disclosed that its operating profit for the fiscal year 2026 exceeded analyst expectations. Furthermore, it projects an 80% compound annual growth rate for multilayer ceramic capacitors used in AI servers and aims to increase AI power supply sales by ¥25 billion year-on-year in fiscal year 2027.
This optimistic view on AI demand aligns with a broader market trend benefiting Asian suppliers to Nvidia. Murata's shares are trading higher than yesterday's close of ¥6,164.
Why Murata Manufacturing's AI Forecast is Driving Shares
Murata Manufacturing produces a wide array of vital electronic components, including multilayer ceramic capacitors (MLCCs), high-frequency parts, and sensors. These are fundamental to modern electronics like smartphones, automobiles, and data centres, enabling devices to be smaller, perform better, and consume less power. The company generates its revenue by supplying these essential parts to major electronics manufacturers globally, integrating deeply into their product development and production cycles.
The primary catalyst behind today's share price increase is Murata's highly positive outlook on demand stemming from artificial intelligence. The market was particularly enthusiastic about the company's projection for an 80% compound annual growth rate for its MLCCs used in AI servers, alongside plans to boost AI power supply sales by ¥25 billion year-on-year by fiscal year 2027. These forecasts underscore the critical role Murata's technology plays in meeting the stringent requirements for high-performance and stable power delivery in the evolving AI landscape, with an additional boost from a ¥150 billion share buyback programme covering 4.12% of outstanding shares.
This strong growth expectation in AI-related markets has propelled Murata Manufacturing's shares. As of 21 May 2026, the company's stock is trading at ¥6,443, marking a 4.5% rise from yesterday's close of ¥6,164.
Consider it like a company that manufactures specialised, high-performance batteries announcing it expects an 80% annual growth in demand for its products from the rapidly expanding electric aircraft industry. The market perceives this as a clear signal of significant future revenue and profits, reflecting that potential value in the company's share price today.
Murata Manufacturing Co., Ltd.
Murata Manufacturing Co., Ltd. (6981) is a Japanese technology firm specialising in ceramic-based electronic components and solutions. Its operations span three key segments: Components, Modules, and Others. The company's extensive product portfolio includes capacitors, inductors, sensors, power products, batteries, and RFID devices, alongside a range of RF components such as filters, couplers, and antennas. Murata also develops Femtet, a CAE software for simulating various physical phenomena. These offerings cater to diverse applications across communications equipment, mobility, enterprise systems, industrial sectors, healthcare, and personal electronics. Founded in 1944, Murata Manufacturing is headquartered in Nagaokakyo, Japan.