GoKawiilA worker inspects a toilet unit at a Toto Ltd. plant in Kitakyushu, Fukuoka Prefecture, Japan, on Thursday, May 28, 2026. Bloomberg | Bloomberg | Getty Images
At a time when investor attention has been on the semiconductor industry, some hidden gems with businesses quite dissimilar to high tech have turned out to be market winners, riding the AI boom. Toto is best known for high-end toilets, Nittobo makes textiles and glass fiber, and Ajinomoto makes MSG seasoning. Their shares have gained 78%, 63% and 61%, respectively, this year, as they make use of their core technologies to benefit from the AI supply chain. Toto makes ceramic electrostatic chucks used in semiconductor manufacturing equipment, while Nittobo supplies advanced glass fiber used in semiconductor package substrates.
Ajinomoto makes insulating material, known as "build-up film" or ABF, used in semiconductor packaging for high-performance computers and data-center servers.
All three companies reported sharp growth in businesses tied to semiconductor demand for their full financial years ended March 31, highlighting the impact of the AI boom.
Toto: plugging away
The company's advanced ceramics business enjoyed higher profit margin than its housing equipment segment, thanks to demand from IoT, digital transformation, AI and data centers for advanced semiconductor equipment.
Toto, in its full year results, said it saw a decrease in sales and profits for its core 100-year-old housing equipment unit, but this was made up by increases in revenue and profits in its advanced ceramics business. The segment saw a 34% increase in annual revenue and 42% jump in operating profit, almost single-handedly pulling the overall company into growth for the financial year.
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