The focus of the AI industry chain is shifting from core chips such as GPUs and HBMs to more segmented basic components. Goldman Sachs recently expressed optimism towards MLCCs and added Murata Manufacturing to its “Conviction Buy List,” indicating that the market is reevaluating the value of power management, passive components, and other elements in the AI infrastructure cycle.
MLCC is not the most prominent AI component, but it is widely found in smartphones, electric vehicles, servers, and high-performance computing devices, fulfilling basic functions such as voltage stabilization, filtering, and current regulation. As AI server power consumption rises and power system complexity increases, the demand for such small components is beginning to surge.
Goldman Sachs has extended the MLCC industry’s growth cycle from the previously anticipated 2028 to around 2030. This implies that AI is bringing not only prosperity to a single chip segment but may drive the entire electronic supply chain into a longer cycle of supply and demand. The repricing of manufacturers such as Murata and Nantong Jianghai reflects the capital market’s search for the next group of “hidden beneficiaries” in the AI boom.
Against the backdrop of the continuous expansion of AI infrastructure, capacitors may not be the most lively theme but could be a crucial observation point for the overflow of the supply chain’s prosperity.
Capacitors, especially multilayer ceramic capacitors, are gaining increasing attention in the tech industry. With financial analysts, especially Goldman Sachs, showing clear bullishness, these tiny components are expected to become more critical as various industries accelerate their shift towards artificial intelligence.
Goldman Sachs recently met with Murata Manufacturing’s President, Norio Nakajima. Following the meeting, Goldman Sachs gave a strong recommendation for Murata’s stock, upgraded its rating, and included it in the high-profile “Conviction Buy List.” The target price set by Goldman Sachs for Murata is 5400 Japanese Yen, approximately $33.88.
The market cycle around Multilayer Ceramic Capacitors (MLCCs) is being reassessed. Previously, many experts projected that the MLCC industry cycle would peak around 2028. However, Goldman Sachs now anticipates that the market’s growth may continue until around 2030, a significant shift for an industry that typically experiences cycles of three to four years.
Murata Manufacturing Co., Ltd. is the most notable company in this trend. Additionally, Goldman’s analysis also mentioned Nantong Jianghai Capacitor Co., Ltd., which has received a new target price of 39.20 RMB, reflecting the increasing demand for stronger power management solutions driven by AI applications.
Understanding the subtle role of MLCCs is crucial. A typical smartphone contains approximately 1000 capacitors, while the number of capacitors used in a modern electric vehicle may be even higher. Historically, the MLCC market has experienced cyclical fluctuations, with the 2017-2018 period demonstrating the critical nature of these components when demand surged across automotive and smartphone industries.
For investors, it is important to note that Murata is primarily listed on the Tokyo Stock Exchange, while Nantong Jianghai is traded on the Shenzhen Stock Exchange. Furthermore, despite Murata’s dominant position, there are other significant competitors such as Samsung Electro-Mechanics and TDK, meaning investors must carefully consider the industry’s competitive landscape.
[BlockBeats]
Beyond GPUs: How MLCC Bullishness Signals Deeper AI Infrastructure Opportunities for Crypto Investors
Goldman Sachs’ recent bullish stance on Multilayer Ceramic Capacitors (MLCCs) represents a significant shift in market perception of the AI supply chain, expanding the investment narrative beyond the traditional GPU and HBM (High Bandwidth Memory) focal points. For experienced crypto investors, this development signals a broader, more nuanced opportunity set within the AI ecosystem that extends beyond obvious beneficiaries to include critical infrastructure enablers.
The Shifting AI Investment Paradigm
The investment community is now recognizing that the AI revolution depends not just on computational horsepower but on the often-overlooked components that enable complex power management and signal integrity. MLCCs, while microscopic in size, play a critical role in voltage stabilization, filtering, and current regulation across AI servers, electric vehicles, and high-performance computing devices.
This shift from “sexy” AI chips to fundamental infrastructure components parallels what we should expect in the crypto space. As the initial hype around AI-focused tokens settles, we’ll likely see increased attention on projects that solve real infrastructure challenges in the AI ecosystem rather than those merely riding the coattails of AI buzzwords.
Implications for Crypto Infrastructure Tokens
Goldman’s extension of the MLCC growth cycle from 2028 to 2030 suggests a longer-than-expected AI infrastructure expansion. For crypto investors, this has several implications:
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Extended Runway for AI-Infrastructure Tokens: Projects focused on semiconductor supply chain management, manufacturing verification, and quality control solutions may benefit from this extended growth cycle. The need for transparency and efficiency in increasingly complex global supply chains presents a natural use case for blockchain technology.
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Energy Grid Management Solutions: The article highlights rising power consumption in AI servers as a key driver for MLCC demand. This accelerating energy consumption creates a significant opportunity for blockchain-based energy grid management, microtransaction systems for energy trading, and carbon credit tracking – areas where several promising crypto projects are already developing solutions.
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Industrial IoT and Manufacturing Tokens: The MLCC sector’s reliance on precise manufacturing processes creates opportunities for crypto projects focused on industrial IoT, smart manufacturing, and supply chain transparency. Companies like Murata and Nantong Jianghai could benefit from blockchain solutions that enhance traceability and quality verification in their complex manufacturing processes.
Identifying Hidden Beneficiaries in the Crypto Space
Just as the market is reevaluating MLCC manufacturers as “hidden beneficiaries” of the AI boom, crypto investors should similarly look beyond the obvious AI-themed tokens. Consider:
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Supply Chain Oracles: Projects providing verified, on-chain data about semiconductor component availability, pricing, and quality could capture significant value as the AI supply chain becomes increasingly complex.
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Decentralized Physical Infrastructure Networks (DePIN): The extension of the MLCC growth cycle suggests sustained demand for physical infrastructure. DePIN projects that can help manage and optimize this infrastructure may find substantial market opportunities.
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Tokenized Manufacturing: The precise requirements of MLCC production create opportunities for tokenized manufacturing platforms that can coordinate complex global supply chains with greater transparency and efficiency.
Risks and Considerations
While the broader AI infrastructure thesis remains compelling, crypto investors should remain cautious:
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Valuation Concerns: As with any emerging theme, there’s a risk of overvaluation as capital flows into AI infrastructure-related crypto projects. Due diligence on actual utility and market fit remains critical.
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Geopolitical Risks: The mention of companies listed in Tokyo and Shenzhen highlights the geopolitical tensions in global supply chains. Crypto projects offering truly decentralized solutions may have an advantage over centralized alternatives in navigating these complexities.
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Implementation Challenges: While the theoretical benefits of blockchain for supply chain management are clear, successful implementation requires overcoming significant real-world challenges, including integration with existing systems and achieving industry-wide adoption.
Strategic Investment Approach
For experienced crypto investors, the MLCC trend reinforces several strategic principles:
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Look for Tangible Utility: Projects that solve real, immediate problems in the AI supply chain are likely more sustainable than those built solely on AI hype.
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Focus on Infrastructure over Applications: While AI applications generate headlines, the underlying infrastructure presents more durable investment opportunities. This mirrors the dynamic between application tokens and infrastructure tokens in the broader crypto space.
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Consider Hybrid Solutions: The most promising opportunities may lie in hybrid approaches that combine traditional industry expertise with blockchain innovation.
Goldman Sachs’ recognition of MLCCs as critical to the AI infrastructure cycle represents a maturation of the investment narrative around AI. For crypto investors, this signals an opportunity to look beyond the obvious and identify projects that can provide real value to the expanding physical infrastructure supporting the AI revolution. The extension of the growth cycle to 2030 suggests we’re in the early stages of this transformation, with substantial opportunity for those who can identify the next generation of infrastructure enablers in both traditional and crypto markets.