These Japanese AI winners don’t make chips. They make toilets, glass fiber and seasoning
A toilet maker, a glass fiber manufacturer and the maker of MSG have in Japan have become major beneficiaries of the AI boom.
The beneficiaries of the AI boom in Japan are not the typical suspects, such as chipmakers or software developers. Instead, companies like Toto, a leading toilet manufacturer, Nippon Electric Glass, a glass fiber producer, and Ajinomoto, the maker of monosodium glutamate (MSG), have seen significant gains. This is because their products are being used in various AI-related applications, such as data centers, high-performance computing, and even robotics.
Toto's high-tech toilets, for instance, are equipped with advanced sensors and AI-powered features that enhance user experience and efficiency. Nippon Electric Glass's glass fibers are used in the production of optical fibers, which are crucial for high-speed data transmission in AI-driven data centers. Ajinomoto's MSG, a flavor enhancer, may seem unrelated to AI, but the company's expertise in fermentation technology has led to the development of bio-based chemicals used in AI-related industries.
As the AI boom continues to drive demand for specialized components and materials, companies like Toto, Nippon Electric Glass, and Ajinomoto are well-positioned to benefit. Trade watchers should keep an eye on how these companies adapt to evolving AI applications and whether they can sustain their growth momentum. Additionally, it's worth monitoring if other Japanese companies, particularly those in niche industries, will also capitalize on the AI trend and become unexpected winners.
Originally reported by cnbc.com. Trade-News adds analysis for finance & markets readers.