Shennan Circuits vs Murata Manufacturing Co.: why the prices moved differently

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  AI-driven PCB upcycle lifts Shennan Circuits Electronic fabric prices jumped 17-18% in August, their biggest monthly gain this year, as AI power supplies squeeze supply. Analysts say the global PCB industry is entering a new upcycle, with server PCB market space set to double to over 90 billion yuan in 2026. Shennan Circuits, a PCB maker, rose over 5% in the sector rally.

  This is the core positive force behind the stock: AI demand driving PCB pricing and sector-wide gains.

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  First-half profit jumps 65.55% on AI orders Shennan Circuits reported first-half 2026 revenue of 15.296 billion yuan, up 46.33%, and net profit of 2.251 billion yuan, up 65.55% year on year. The company credited AI computing infrastructure investment and new customer wins. Second-quarter profit of 1.401 billion yuan beat the midpoint of its own forecast.

  Strong earnings confirm the AI demand story is flowing into actual profits, a key support for the stock.

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  OpenAI revenue miss triggers AI hardware selloff OpenAI's annualized revenue run rate came in about $20 billion below expectations, sparking panic. A-share computing hardware stocks fell hard, with Shennan Circuits dropping more than 6% along with other PCB names. The selloff reflects fears that AI spending may not justify current valuations.

  This is the main counterweight: a sharp sentiment-driven drop showing how sensitive the stock is to AI spending doubts.

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  China GDP slowdown weighs on electronics demand China's second-quarter GDP growth slowed to 4.3%, missing expectations, and the Shanghai Composite fell. Semiconductor and electronic component stocks, including Shennan Circuits, declined as investors worried about weaker demand for electronics. This is a broad economic headwind rather than a company-specific problem.

  It shows a macro risk that can pressure demand for Shennan Circuits' products, balancing the bullish AI narrative.

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  AI server demand and pricing power Murata holds about 70% of MLCCs used in AI servers, and a new US ETF (CAPA) lists it as a top holding. AI servers need tens of thousands of these tiny components each, and Murata expects shipments into AI servers to grow about 30% a year through 2030. It has also raised prices on high-end MLCCs by 15-35%, lifting revenue per part.

  This is the core demand and pricing engine behind the stock's rise.

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  New world's-smallest MLCC in mass production Murata started mass production of the world's smallest three-terminal low-ESL MLCC (0.6 x 0.3 mm), cutting mounting area about 64% versus its previous smallest. These stabilize power near chips in phones, wearables and AI hardware. The news helped push the shares up 7.9% to ¥8,471, showing Murata's technology lead.

  A concrete new product milestone that directly moved the stock and defends Murata's technical edge.

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  Product-line cleanup and Thailand expansion Murata will discontinue some consumer and automotive MLCC part numbers from fiscal 2026 while expanding other capacity — a shift toward higher-value products. It is also expanding advanced MLCC production in Thailand, where Japanese investment remains strong. Both support margins and capacity, but the discontinuations show it is pruning weaker business.

  Shows how Murata is reallocating supply toward profitable, advanced parts.

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  TDK and Taiyo Yuden alliance sharpens competition TDK and Taiyo Yuden will jointly develop cutting-edge electronic components and may even link capital, sending their shares up sharply. Analysts call the pairing a possible counterweight to Murata, with Taiyo Yuden strong in small high-performance parts for data centers and TDK in power-semiconductor components. This is a real competitive check on Murata's dominance.

  The main counterweight to the bullish case, showing rivals teaming up against Murata.

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  AI server demand lifts orders and profit forecast Murata raised its full-year net profit forecast to 338 billion yen, up 44.5%, on strong AI data center demand. Its MLCC orders jumped 85.5% year-on-year, and revenue rose 20.7%. This directly boosts profit expectations and supports a higher stock price.

  This is the core new event showing how AI demand translates into higher earnings for Murata.

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  MLCC price increases boost margins Murata led price hikes of 15-35% for AI server and high-end automotive MLCCs. Competitors followed with 30% increases. Higher prices mean more profit per unit sold, directly lifting Murata's earnings and stock price.

  Pricing power is a key driver of profitability and shows the upcycle is real.

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  Capacity expansion to capture growing demand Murata plans to invest 250 billion yen to expand server MLCC production capacity, adding 80 billion yen specifically for this. This positions the company to meet surging AI demand and grow future revenue, supporting the stock.

  Capacity investment signals confidence in sustained demand and future growth.

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  Tech selloff and geopolitical tensions hit chip stocks A global tech selloff and U.S.-Iran tensions caused the Nikkei to drop 4%, with Murata among major decliners. Such market-wide fears can temporarily push Murata's stock down, even if its business fundamentals remain strong.

  This is a real counterweight showing external risks that can pressure the stock.

Based on 6 stories →