Capacitors Are the New Memory

Multilayer Ceramic Capacitors (MLCCs) are emerging as the next critical bottleneck in the AI supply chain, with demand projected to grow fourfold by 2030. Goldman Sachs identifies leading Japanese and Asian component makers as primary beneficiaries of this structural supply/demand mismatch and rising pricing power.

Key Takeaways

• 1.MLCCs (Multilayer Ceramic Capacitors) have become the third-highest cost item in AI server builds, following GPUs and memory, due to their critical role in power smoothing and noise filtering.
• 2.The AI server MLCC market is projected to grow 4.3x from FY25 to FY30, representing a 34% CAGR, as next-generation server racks (like NVIDIA's Vera Rubin) require significantly higher capacitor content.
• 3.Supply tightness is driving significant price increases; major suppliers like Murata and Taiyo Yuden have already implemented or announced price hikes between 15% and 35%.

Table of Contents

• AI Infrastructure Hierarchy
• Multilayer Ceramic Capacitors (MLCCs) Explained
• The Bottleneck
• Outlook for Tightening Supply/Demand
• Price Adjustments and Trade Statistics
• Buy Ratings and Top Picks
• Under-the-radar AI-related themes
• Vera Rubin Server Rack Analysis
• Investment Strategy and Basket Constituents

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