Murata Manufacturing has reported fourth-quarter earnings that beat analyst estimates, fueled by robust demand from artificial-intelligence data-center builders.
Net income in the three months through March was ?76.57 billion ($477 million), the Kyoto-based company said Thursday. Analysts had estimated ?60 billion on average. Revenue was ?460.62 billion, also better than expected.?
Murata¡¯s shares surged as much as 8.8% after the results.
The company is the world¡¯s leading supplier of multilayer ceramic capacitors (MLCCs), essential components for every device that uses electricity because they regulate power flow. The company¡¯s high-end MLCCs are sought by U.S. hyperscalers building up AI data centers, and the company has been saying that its production pace is struggling to catch up with runaway demand.
A surge in material costs stemming from elevated inflation and the U.S.-Iran conflict is posing a risk, and investors are pressuring Murata management to raise prices to offset higher expenses and take advantage of the burgeoning demand. Murata¡¯s chief previously said the company is considering raising prices, and it is adjusting production line allotment so that it can make more high-end MLCCs while continuing to expand overall capacity.
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