AI servers lift Japanese chip-materials profit forecasts

By Sophie Lindqvist

Murata raised its operating-profit forecast for the fiscal year ending March 2027 by ¥90.0 billion to ¥520.0 billion, after first-half revenue from computer applications rose 61.2% to ¥235.1 billion.

Ajinomoto and JX Advanced Metals followed on Nov. 9. Their revisions point to an AI buildout across several hardware layers rather than one product cycle.

What changed in the guidance?

All three companies report fiscal years ending in March. The figures cover April through September 2026 and forecast the year ending March 2027.

• Ajinomoto: First-half revenue rose 12.5% to ¥831.2 billion and business profit rose 25.2% to ¥108.6 billion. It raised full-year business profit to ¥210.0 billion from ¥202.0 billion, with the ¥8.0 billion increase concentrated in ABF.
• JX Advanced Metals: Revenue rose 34.1% to ¥531.5 billion and operating profit climbed 115.3% to ¥150.8 billion. It raised operating-profit guidance to ¥255.0 billion from ¥232.0 billion.
• Murata: Revenue rose 20.8% to ¥1,090.8 billion and operating profit rose 48.9% to ¥245.9 billion. It lifted guidance on Oct. 30 to ¥520.0 billion from ¥430.0 billion.

Ajinomoto and JX dated their previous forecasts to Aug. 6. Profit grew faster than sales at each supplier. The yen averaged ¥159.37 per dollar during the half, against ¥146.04 a year earlier. The weaker currency flattered yen-reported results for all three exporters.

Where does server demand enter the hardware stack?

Ajinomoto makes ABF build-up insulating film for package substrates carrying processors. JX supplies sputtering targets for depositing metal films on logic and memory chips, plus indium phosphide substrates for optical components. Murata makes multilayer ceramic capacitors, or MLCCs, that store and smooth power across server boards.

Each company cited data-center or AI-server demand for the six months ended Sept. 30. No cited release disclosed process-node or wafer-size capacity. The evidence reaches materials and components, not wafer fabrication.

Can Ajinomoto convert ABF strength into profit?

First-half profit attributable to owners rose 43.1% to ¥73.3 billion, helped by recognition of deferred tax assets.

The Healthcare & Others segment, which houses ABF, grew sales 22.0% to ¥192.7 billion and business profit 57.8% to ¥47.4 billion. Ajinomoto cited “significantly higher revenue in electronic materials.”

An Investing.com summary of company slides put first-half Functional Materials sales at 163% of the prior year and business profit at 181%. Its ABF serves high-performance boards used in AI, servers and networks.

Full-year sales guidance increased ¥35.0 billion to ¥1,767.0 billion, while business profit rose ¥8.0 billion to ¥210.0 billion. The Healthcare & Others business-profit forecast gained ¥11.0 billion. Frozen Foods was cut by ¥3.0 billion, while Seasonings & Foods stayed unchanged.

Profit attributable to owners now stands at ¥135.0 billion, up ¥11.5 billion. The annual dividend is ¥52 per share.

Can JX supply the forecast?

The semiconductor materials segment grew sales 33.4% to ¥110.9 billion. Operating profit rose ¥17.0 billion to ¥36.1 billion as sputtering-target sales benefited from high advanced-logic and memory output.

JX expects that segment to earn ¥73.0 billion this fiscal year, up from its August forecast of ¥61.0 billion. The ICT materials segment added ¥10.7 billion of operating profit, partly because titanium copper, an alloy used in connectors, sold more as AI-server demand grew.

Basic-materials profit also included a gain from April's sale of part of JX's Caserones copper-mine stake in Chile.

For the full year, JX now expects ¥1,050.0 billion revenue, ¥255.0 billion operating profit and ¥160.0 billion attributable profit. The prior targets were ¥1,025.0 billion, ¥232.0 billion and ¥141.0 billion.

JX cited higher volumes and pricing in its “focus” businesses on AI-server demand, plus a higher copper-price assumption. Lower mine output offset part of that gain. The ¥23.0 billion operating-profit increase comprises ¥19.5 billion from market conditions, ¥10.0 billion from focus-business volume and pricing, and ¥8.0 billion from base-business margins. A ¥14.5 billion mine-output reduction offsets part of the improvement.

JX's copper-price assumption rose to 619 cents per pound from 586 cents. Management kept guidance below the ¥265.0 billion analyst average available to the company, citing mine cuts. Its focus businesses now target ¥114.0 billion profit, above the ¥105.0 billion analyst average.

JX plans to raise indium phosphide substrate capacity by a factor of seven to 10 from the second half of this fiscal year. Sputtering-target capacity will expand by 1.3 times from fiscal 2027. These are plans, not shipped output. The cited results gave no installed-capacity schedule.

Can Murata hold its higher earnings?

First-half revenue rose 20.8% to ¥1,090.8 billion, operating profit rose 48.9% to ¥245.9 billion, and attributable profit rose 40.6% to ¥186.2 billion.

Capacitor revenue increased 33.1% to ¥605.6 billion, led by MLCCs for data centers, distributors and vehicles. Computer-application revenue rose 61.2% to ¥235.1 billion on stronger MLCC, power-module and lithium-ion battery sales for data centers. Smartphone-related module and substrate sales fell.

Murata attributed faster profit growth to higher factory utilization and increased output, plus a weaker yen. Higher fixed costs and lower selling prices partly offset those gains.

For the full year, it now forecasts ¥2,260.0 billion revenue, ¥520.0 billion operating profit and ¥396.0 billion attributable profit. The July 31 targets were ¥2,110.0 billion, ¥430.0 billion and ¥338.0 billion. Management cited “further growth in demand related to data centers.” Murata disclosed no separate MLCC capacity schedule in the cited results.

Does consolidation add another risk?

The AI buildout has also pushed memory prices higher and squeezed device makers, according to MLQ, which reported 80% margins at memory makers. Japan's materials sector is consolidating. On Nov. 9, Mitsui Chemicals and the Development Bank of Japan agreed to buy photoresist maker JSR from state fund JIC for ¥1.84 trillion.

The transaction sits outside these three earnings upgrades. It still extends the consolidation signal across Japan's semiconductor-materials sector.

The results show reported demand across packaging, chip materials and passive components. They do not prove every forecast will hold; mine supply, pricing, foreign exchange and planned capacity remain the tests.