Japanese toilet maker called 'most undervalued and overlooked' AI beneficiary

The memory supply crisis continues as AI datacentres drive high demand for RAM and system storage. Amid rising component costs and dwindling bargains, one unlikely beneficiary has drawn investor attention: Toto, the large Japanese company that manufactures bathroom appliances.

Investment manager Palliser Capital has taken a large stake in Toto and described it as "The Most Undervalued and Overlooked AI Memory Beneficiary" in a recent presentation. Toto's advanced ceramic segment contributes more than 50% of total operating profit and has made the company "the dominant supplier of electrostatic chucks for Lam Research’s cryogenic dielectric etching tools used in 3D NAND channel hole etching." Palliser argues Toto will be a major player in next‑generation chip production and is among the company's top 20 investors.

The move comes as big tech firms, including Meta, OpenAI, Nvidia, Microsoft, and Amazon, have been linked to investments totalling $200 billion this year, prompting investors to look for exposure across the supply chain.

Japan

toto, palliser capital, ai memory, datacentres, ram, system storage, electrostatic chucks, lam research, 3d nand, chip production