Morgan Stanley Maintains Overweight Ratings on MLCC Suppliers as AI Server Demand Expands

Morgan Stanley has retained Overweight ratings on Murata, Samsung Electro-Mechanics (SEMCO) and Yageo, arguing that MLCC penetration in AI servers and server racks remains at an early stage.

The bank expects data-center demand for compact, high-capacitance and higher-margin MLCCs to increase as AI server deployments expand. The article citing Morgan Stanley forecasts global MLCC shipment value to grow from US$14.67 billion in 2025 to US$44.45 billion in 2031, representing a projected 20.3% CAGR over the period.

For data-center infrastructure, the thesis extends beyond demand for servers and accelerators. MLCCs are core passive components within server and rack equipment, so a larger MLCC market would point to rising component content and value across the AI hardware stack. If Morgan Stanley’s forecast is realised, demand for these components could become a useful indicator of AI-server and rack deployment activity, while also creating a possible supply-chain constraint as infrastructure scales.

Morgan Stanley projects Murata to hold 41% of the global MLCC market in 2025. SEMCO’s market share is cited at 23%, although the article does not specify the relevant period. The bank also forecasts that MLCCs will account for 50% of Murata’s total sales in 2025, compared with 46% for Samsung, 70% for Taiyo Yuden and 19% for Yageo.

Murata remains Morgan Stanley’s preferred Japanese electronic-components stock. The bank reduced its Murata target price from ¥12,500 to ¥11,000 after raising the risk-free-rate assumption in its DCF model from 2.6% to 3.0%; it nonetheless maintained its positive rating.