Although Samsung Electro-Mechanics showed weakness of over 5% during trading and was pushed down to 1,866,000 won, the securities industry is paying attention to its mid-to-long-term growth potential driven by the expanding demand for Artificial Intelligence (AI) server multi-layer ceramic capacitors (MLCCs).

In the morning session of the stock market on the 10th, Samsung Electro-Mechanics underwent a short-term correction, falling to an intraday low of 1,866,000 won. This was due to a combination of recently increased volatility across the tech sector and profit-taking sell-offs.

However, Meritz Securities maintained a positive outlook, identifying AI server MLCCs as the company's core growth driver in a report released on the same day. Meritz Securities assessed that ultra-compact and ultra-high-capacity MLCCs for AI servers are virtually emerging as strategic assets. AI servers must perform high-performance computations in limited spaces, requiring a much higher level of power stability than general servers, which is rapidly increasing the usage of ultra-high-capacity MLCCs.

In particular, this product requires highly difficult technology to maximize the number of laminated layers, limiting the number of companies capable of producing it. Meritz Securities diagnosed that while demand is structurally increasing centered around AI servers, there are not many companies equipped with the supply capacity, making it highly likely that supply shortages will intensify.

In fact, as the global competition to invest in AI data centers becomes fierce, major customers are moving beyond simple purchases to secure volumes through Long-Term Agreements (LTAs). Meritz Securities analyzed that, unlike past contracts focused on price negotiations, these LTAs are strategic contracts to secure core components stably, which could lead to strengthened bargaining power for Samsung Electro-Mechanics.

The market consensus is that expectations for growth in the related market are high, considering the server expansion plans of global AI companies, including Nvidia, and the fact that the quantity of high-specification MLCCs required per AI server increases significantly compared to general servers.

The securities industry evaluates Samsung Electro-Mechanics as a direct beneficiary of AI infrastructure expansion, given its competitiveness in the semiconductor substrate and MLCC sectors. Despite short-term stock price corrections, the deepening shortage of MLCCs for AI servers and the expansion of LTAs are expected to act as key factors in re-evaluating the corporate value of Samsung Electro-Mechanics.

Market attention is focusing on how the future pace of AI data center investment expansion and global customers' competition to secure MLCCs will positively impact Samsung Electro-Mechanics' business performance and stock price.

[This article was written for the purpose of providing investment information, and the investment decision and responsibility lie with the investor. AI was partially utilized in the writing process of this article.]