Murata Manufacturing Co. has raised its profit forecast, highlighting strong demand for high-end artificial intelligence components that drive the expansion of the global tech industry. The Kyoto-based company now expects full-year operating profit of 430 billion yen ($27 billion), up from its previous estimate of 380 billion yen.

Operating profit for the April-June quarter reached 98.5 billion yen, surpassing the average analyst estimate of 90.6 billion yen. In a statement, the company noted, "We anticipate continued growth in data center-related demand, and the weaker yen is expected to help push profits beyond our earlier projections."

Major data center operators worldwide purchase Murata's premium products. The company is the leading global supplier of multilayer ceramic capacitors, which regulate electrical current and are essential components in all electronic devices.