Activist Investor Calls Japan's Biggest Toilet Maker a Hidden AI Play
UK investor Palliser argues Toto's advanced ceramics business makes it an overlooked player in the AI chip supply chain.
Here's a sentence you probably didn't expect today: Japan's largest toilet manufacturer might be an AI stock.
UK activist investor Palliser Capital is making the case that Toto — yes, the company best known for high-tech bidets — is "undervalued and overlooked" as an artificial intelligence play. The reason? Advanced ceramics.
Toto's ceramics expertise extends well beyond bathroom fixtures. The company produces advanced ceramic materials used in semiconductor manufacturing, placing it squarely in the AI chip supply chain.
Palliser is pushing Toto to lean harder into this side of its business, arguing the company isn't getting proper credit from the market for its role in chip production. The investor wants Toto to expand and spotlight its semiconductor materials operation rather than let it remain a quiet sideline.
From toilets to tensor cores. Stranger pivots have happened.