Murata Warns AI Spending Will Level Off After Raising Outlook

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessMurata Warns AI Spending Will Level Off After Raising OutlookMurata Manufacturing Co. warned that the global technology buildout will eventually lose steam even as the maker of high-end AI components raised its profit outlook.Author of the article: You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — Murata Manufacturing Co. warned that the global technology buildout will eventually lose steam even as the maker of high-end AI components raised its profit outlook.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe current pace of spending by the world’s largest data center operators won’t last because of increasing competition and debt levels, the company’s president, Norio Nakajima, told an earnings call Friday. The company posted 81% growth in its data center business and said it expects further gains, spurred by a weakening yen.“We don’t think the investments that hyperscalers currently have planned for the year will necessarily proceed exactly as envisioned,” Nakajima said. “We are likely to see revisions to plans and delays.”Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againMurata’s high-end products are sought after by data center builders, making it the leading global supplier of multilayer ceramic capacitors (MLCCs), an essential component for every device that uses electricity because it regulates power flow.The Kyoto-based company raised its full-year profit outlook on Friday to ¥430 billion ($2.7 billion), up from a previous forecast of ¥380 billion. It posted June-quarter operating profit of ¥98.5 billion, beating the average analyst estimate.But Murata is struggling to fill orders. Its closely watched MLCC book-to-bill ratio, a comparison of new orders and products shipped, rose to a record high of 1.47 in the June quarter.Executives have said the company is working to raise output by boosting investment and converting production lines from smartphone capacitors to those used in AI servers. The company said Friday it will spend an additional ¥5 billion this year, raising capital expenditure to ¥255 billion. Murata executives remain confident in the company’s technological lead over Chinese rivals, particularly in high-end products. They say years of working with smartphone makers have enabled the company to shrink component sizes while increasing energy storage, which is hard to match.(Updates with executive comments from the first paragraph.)This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.