Daiwa Securities analyst SK Kim says Samsung Electro-Mechanics’ revenue growth
is likely to be driven by demand for multi-layer ceramic capacitors (MLCCs) used
in AI data servers. The company has signed multi-year supply contracts with
several large tech customers for delivery starting next year. Daiwa expects AI
servers to account for 40% of the company’s MLCC revenue by 2027 and notes AI
servers use about 30% more MLCCs than previous-generation data servers. Daiwa
retains a Buy rating but trims its PT from 3.3 mln won to 3.0 mln won to reflect
lower peer P/E multiples.