Nihon Dempa Kogyo Expected to Benefit From Growing Data-Center Demand -- Market Talk
Dow Jones2026/09/09 06:580658 GMT - Nihon Dempa Kogyo is expected to benefit from growth in demand for crystal devices for data centers, Nomura's Mikihiko Yamato says in a report. It has a competitive edge in high-precision oscillators for optical transceivers having transmission speeds of 1.6- and 3.2-terabits per second, which are used in artificial-intelligence data centers, the analyst says. Optical transceivers currently operate at transmission speeds of 400 and 800 gigabits per second, but Nomura expects this to increase to 1.6Tbps or 3.2Tbps as data volumes increase. Nomura initiates coverage of the stock with a buy rating and a target price of 6,000 yen. Shares closed 8.65% higher at Y2,737. (ronnie.harui@wsj.com)
(END) Dow Jones Newswires
September 09, 2026 02:58 ET (06:58 GMT)
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