Toto's Shares Surge After Analysts Predict AI-Driven Growth in Chipmaking Materials
Toto's shares surged 11%, marking the largest increase in five years, following an upgrade by Goldman Sachs analysts who cited expected growth in the company's chipmaking materials amid rising memory demand. The analysts highlighted the potential for profit growth from Toto's electrostatic chucks used in NAND chipmaking, driven by ongoing AI infrastructure development and a favorable supply-demand balance in the memory industry.
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Japanese toilet maker Toto's shares rose 11%, the highest increase in five years, driven by expectations of growth in its chipmaking materials operations amid booming memory demand. Goldman Sachs analysts upgraded Toto's rating to buy from neutral, highlighting potential profit growth from its electrostatic chucks used in NAND chipmaking, which are expected to benefit from an AI infrastructure buildout.
The analysts noted that the tight supply-demand balance in the memory industry will support this growth. Toto anticipates continued demand for its products due to ongoing AI data center construction.
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