The humble capacitor, a component most people haven’t thought about since high school physics, is having its moment. Goldman Sachs Research is telling investors to pay attention to the tiny electronic components that regulate voltage and store energy, because AI’s insatiable appetite for data center infrastructure is creating what the bank’s analysts describe as potentially the longest and largest upcycle in capacitor sector history.
The MLCC bet
At the center of Goldman’s call is the multi-layer ceramic capacitor, or MLCC. Goldman has revised its 2026 MLCC pricing forecast upward, moving from a flat outlook to a predicted increase of 0-5%. Goldman now projects the AI-driven MLCC upcycle will extend to roughly 2030, a notable stretch from prior expectations that pegged the cycle ending around 2028. The revision came after Goldman analysts met with Murata Manufacturing, one of the world’s dominant MLCC producers.
The companies in the crosshairs
Goldman has maintained a Buy rating on Murata Manufacturing with a target price of 5,400 yen. The bank has also rated Nantong Jianghai Capacitor Co., a Chinese manufacturer with direct exposure to the growing data center power infrastructure buildout, as Buy.
