Senior Technology Analyst, Japanese Equities, LightStream Research

Scott Foster

Securities analyst covering electronics, precision equipment & robotics, engineering, construction, transport and other sectors for more than 25 years in Japan and 3 years in Korea. Permanent resident of Japan.

Senior Technology Analyst, Japanese Equities

US Banks - Commercial Paper +41% YoY in Most Recent Week, Loans +4.7%, LLR Growth Dwindles +1.1%

Hitachi Ltd. (6501 JP): Short and Long Term Benefit from New U.S. Investments

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Bottom-Up

<ul>
<li>An agreement to supply OpenAI with energy-saving electric power equipment should be accretive to Hitachi's sales and profits as long as the AI boom continues.</li>
<li>Hitachi is also building an "AI Factory" based on Nvidia technology. This should accelerate the growth of Hitachi's<em> Lumada</em> digital services platform, also boosting sales and profits.</li>
<li>Hitachi's share price jumped 10.3% on the OpenAI news. Data center news flow and AI sentiment now drive the share price. </li>
</ul>


An agreement to supply OpenAI with energy-saving electric power equipment should be accretive to Hitachi's sales and profits as long as the AI boom continues.
Hitachi is also building an "AI Factory" based on Nvidia technology. This should accelerate the growth of Hitachi's Lumada digital services platform, also boosting sales and profits.
Hitachi's share price jumped 10.3% on the OpenAI news. Data center news flow and AI sentiment now drive the share price. 


Hitachi Ltd. (6501 JP): Tie-Up with OpenAI Opens the Flood Gates