MLCCs ripping
Good discussion in the Substack chat over the last 2 to 3 days coinciding with a 15% move in Yageo, which has now more than doubled since the start of April:
Lots of questions about whether the boat has been missed so I thought to summarise the bull case being circulated by key opinion leaders and reproduce some highlights from the chat.
AI server demand for a tiny but critical component — the capacitor — is inflecting hard, and supply can't keep up:
GPU power consumption is exploding across generations, and more power means proportionally more capacitors required per rack.
New rack power architectures require more expensive, harder-to-manufacture capacitors, lifting average selling prices even before counting unit growth.