Samsung Electro-Mechanics Up More Than 6% Intraday on Expectations for an AI-Driven MLCC Boom [Stock NOW]

[Financial News] Samsung Electro-Mechanics is trading up more than 6% intraday on expectations of improved earnings driven by growing demand for multilayer ceramic capacitors (MLCCs) for artificial intelligence (AI) servers and supply shortages.
As of 11:59 a.m. on the 22nd, Samsung Electro-Mechanics was trading at KRW 1,519,000, up KRW 90,000, or 6.30%, from the previous trading day.
The stock opened at KRW 1,440,000 and rose as high as KRW 1,548,000 during the session. It closed at KRW 1,429,000 the previous trading day.
Investor sentiment appears to have been influenced by expectations that demand for high-capacity MLCCs will grow rapidly following the launch of NVIDIA Corporation's next-generation AI server platform, 'Vera Rubin,' and increased AI infrastructure investment by global big-tech companies. There are also expectations that supply shortages could spread to general-purpose MLCCs used in information technology (IT) devices as production of high-value-added products for AI servers expands.
On the 1st, Samsung Electro-Mechanics signed a long-term supply agreement worth KRW 1.0722 trillion with a major global company for MLCCs used in AI servers. Based on disclosures, the long-term supply agreements the company has signed since May in the silicon capacitor and AI server MLCC segments total KRW 3.32 trillion.

[email protected] Lee Jung-hwa Reporter