TICKER 6146.T
ISIN JP3548600000
Market cap. JPY
7,256,172,472,920
Shs outstanding 108,430,551
Disco Corporation manufactures and sells precision cutting, grinding, and polishing machines in Japan and internationally. The company’s precision machines include dicing saws, laser saws, grinders, polishers, wafer mounters, die separators, surface planers, and waterjet saws, as well as products for dicing before grinding process and package singulation. It also offers precision processing tools comprising dicing blades, grinding wheels, and dry polishing wheels; and other products, such as accessory equipment, as well as frames and cassettes, and additives for cutting waters. In addition, the company is involved in the disassembly and recycling of precision cutting, grinding, and polishing machines, as well as provides training services for the maintenance and operation of its products. Further, it leases precision machines; and purchases and sells used machines. The company was founded in 1937 and is headquartered in Tokyo, Japan.
Strategy: Japan Tech Titans
Return at exit: Live
AI-Driven Semiconductor Equipment Leader
• DISCO Corp’s stellar market performance is evidenced by impressive returns: 51% over 6 months and 50% over the past year, with the stock trading near its 52-week high (92%).
• Exceptional profitability metrics demonstrate operational excellence: 42% operating margin and 20% return on assets, supported by management confirmation that facilities are running at full capacity to meet demand.
• Strong growth trajectory continues with 13% revenue growth (LTM), 17% quarterly revenue growth, and 23% dividend growth, while Q3 orders exceeded expectations by ¥10 billion.
• Multiple analyst firms (Bernstein, Morgan Stanley) have identified DISCO as a prime beneficiary of AI semiconductor expansion, with Bernstein raising its FY27 EPS growth forecast to 30%.
• The company’s specialized precision equipment for advanced packaging and HBM memory positions it perfectly within the AI chip manufacturing ecosystem, with continued capacity expansion to meet surging demand.