Nihon Dempa Kogyo rebounded sharply. Nomura Securities reportedly initiated coverage with a Buy rating and a ¥6,000 target price, citing the prospect of high growth ahead for its high-precision oscillators for AI data centers.
Nihon Dempa Kogyo rebounded sharply, with Nomura Securities reportedly initiating coverage with a Buy rating and setting a target price of ¥6,000.
The company is competitive in high-precision oscillators compatible with optical transceivers for AI data centers, and volumes are expected to increase alongside higher unit prices. Its business serving this market is therefore expected to expand rapidly over the next several years, with adjusted operating profit projected to grow at an annual rate of 25% from the fiscal year ending March 2028 through the fiscal year ending March 2031.