## AI Components — Where are the Undervalued Segments?

There is a clear order to the AI server component rally. It flows from the most visible, most expensive, and most familiar to the smaller and quieter.

Connectors were round 1. Most investors jumped in late while Amphenol rose 98%. MLCC is now the starting point of round 2. Just this week, Murata CEO's Bloomberg interview and Samsung Electro-Mechanics' 14% surge fired the starting gun. And round 3 is in the works that no one is talking about yet — GaN power semiconductors and inductors.

Analysis of Parts Rally Order

① High-Speed Connectors · Cables

✓ Already Reflected

Amphenol(APH) +98% YTD, TE Connectivity(TEL) +55% YTD. With the standardization of 224G signal transmission speeds, demand for connectors between GPU racks has exploded. It's expensive to get in now. The growth story is already fully reflected in the stock price, even with the completion of the CommScope CCS acquisition ($10.5B).

APH +98% TEL +55%

② MLCC (Passive Component) — Right Now This Week

🔴 Currently in Progress

Up to 440,000 MLCCs go into one AI server rack. Dozens of times more than a smartphone. The utilization rate of advanced MLCC production lines is already over 80%, and orders have exceeded twice the production capacity.

Decisive Signal This Week: On February 17, Murata CEO officially mentioned reviewing price increases to Bloomberg → Samsung Electro-Mechanics surged 14% in one day (2/19) → On February 27 (today), Samsung Electro-Mechanics is also preparing for a double-digit increase in April. Taiwan's Yageo also started raising tantalum capacitor prices. The MLCC price increase cycle has just begun.

Similarity to Memory Rally: Like the HBM price increase cycle in 2023, advanced MLCCs are only supplied by two companies, Murata and Samsung Electro-Mechanics, so their bargaining power is absolute.

009150 Samsung Electro-Mechanics 6981.T Murata 2327.TW Yageo 6976.T Taiyo Yuden

③ GaN Power Semiconductor — Next in Line

🟡 Initial Awareness Forming

Why Now: NVIDIA's AI factories are transitioning to an 800V DC architecture. Existing silicon MOSFETs cannot meet these voltage, frequency, and efficiency requirements. GaN (gallium nitride) reduces losses by 50% and increases switching frequency, reducing the size of passive components as well.

Navitas Semiconductor(NVTS) — Specializes in GaN power ICs for AI data centers. 58% YoY growth in 2026 Q1. Early Adoption in NVIDIA's 800V AI factory ecosystem. Still a small cap with a market cap of $600M. Extremely low analyst coverage.

onsemi(ON) — Announced vertical GaN technology on February 24, 2026 (3 days ago). Operates above 1200V, directly targeting AI data center 800V DC-DC converters. A large cap, but the GaN story is not yet reflected in the price.

NVTS ON IFNNY (Infineon)

④ Inductors · Ferrite — No Man's Land

🔵 Almost No One Knows

Why Are We Missing It: Inductors (coils) are essential for power filtering and noise removal along with MLCCs, but they are quieter than MLCCs. In AI servers, the price of ferrite beads and chip inductors has already risen by 15-20% due to rising raw material costs of silver and copper, but the stock prices of manufacturers have not reacted at all.

TDK(6762.T) — The world's No. 1 inductor and ferrite manufacturer. Despite the surge in demand for high-frequency inductors for AI servers, the stock price is down -8% this year. Weakness in consumer electronics is masking the benefits of AI. Exactly like Samsung Electro-Mechanics in 2024 — AI demand is buried in consumer weakness and not reflected in the stock price.

Vishay Intertechnology(VSH) — A US-listed pure-play passive component specialist. A set of 3 types: resistors, inductors, and capacitors. Exposure to AI server demand is increasing, but market awareness is low.

6762.T TDK VSH 6976.T Taiyo Yuden

Visualization of Rally Order

Figure 1. AI Component Sector YTD Stock Return (%)

Source: Bloomberg, Zacks, Mason Research (as of 2026.02.27)

"One AI server has 30,000 MLCCs, and one rack has 440,000. That's 30 times more than a smartphone. But MLCC stock valuations are still at smartphone cycle valuations."

— Lee Jong-wook, Analyst at Samsung Securities, 2026.02.24

Parts Category	Rally Status	AI Server Mounting Scale	Key Players	Stock Price Reaction	Entry Judgment
High-Speed Connectors · Cables	✓ Completed	Thousands per rack	APH, TEL	+55~98%	Too Late to Enter
MLCC (Advanced Ceramic Capacitor)	🔴 Starting Now	440,000 per rack	009150, 6981.T, 2327.TW	Samsung Electro-Mechanics +14% (2/19)	⭐ Key Now
GaN Power Semiconductor	🟡 Initial	Dozens per PSU·VRM	NVTS, ON, IFNNY	NVTS Almost No Reaction	Prepare in 2-3 Months
Inductors · Ferrite Beads	🔵 Undiscovered	Thousands per board	6762.T TDK, VSH	TDK -8% YTD	Next After MLCC
PCB (High-Layer Count for AI Servers)	🟡 Initial	1-4 per server	TTMI, Sanmina	Partially Reflected	Selective
Thermal Interface Material	🔵 Undiscovered	Essential per GPU	Momentive, 6727.T Wacker	Almost No Reaction	Quiet Necessity