Sakura Internet

Research evidence excerpt

Sakura Internet

Global Markets Research

28 July 2026Sakura Internet

3778.T 3778 JP / EQUITY: JAPAN TELECOMMUNICATIONS

RatingWe view announcement of new GPU investment

Remains Buyas a positive

Target price

We raise our medium-term earnings forecasts and target price, reiterate Increased from 3,685 JPY 4,076

our Buy rating

Closing price JPY 3,100We reiterate our Buy rating, expect new GPU investment to contribute to sales in 28 July 2026

28/3

In Apr–Jun 2026, operating profits came in at ¥1.23bn, beating our forecast of ¥590mn Implied upside +31.5%

thanks to strong sales of GPU infrastructure services and only a limited rise in electricity

costs. Management raised its full-year 27/3 operating profit guidance from ¥1.5bn to

¥2.5bn. We raise our 27/3 operating profit forecast from ¥2.33bn to ¥3.12bn. The

company announced plans to invest ¥26.0bn to introduce servers featuring Nvidia Rubin Relative performance chart

GPUs in January 2027 in response to improved supply–demand conditions for GPU

computing resources in Japan (the start date of services is TBD). Accordingly, we raise

our GPU investment forecasts and hike our medium-term profit forecasts. We obtain our

target price of ¥4,076 using an EV/EBITDA of 7.5x (previously 7.5x) on forecasts for 29/3,

when we expect GPU investment to contribute to profits.

Growing demand for GPU computing resources in Japan

We expect demand for GPU computing resources in Japan to increase for inference as

well as for learning model upgrades. Sakura Internet's customers include Preferred

Networks, the National Institute of Infomatics, and Sakana AI, and we think it could

provide GPU computing resources to Microsoft, which it announced a partnership with in

April 2026.