NTT (TSE:9432) Valuation Check as New AIVista Unit and Photonic AI Breakthrough Expand Its Tech Ambitions

NTT (TSE:9432) is stepping up its AI ambitions, launching NTT DATA AIVista in Silicon Valley under CEO Dr. Bratin Saha, while its labs showcase a new photonic processor for optical neural network inference.

See our latest analysis for NTT.

Despite the buzz around AIVista and its photonic processor breakthrough, the latest share price of ¥155.1 comes with a modest year to date share price return of around negative 1 percent. The five year total shareholder return of roughly 71 percent suggests that, over the longer run, patient holders have still been rewarded and that momentum has eased rather than disappeared.

If NTT’s AI push has caught your attention, it could be a good moment to see what other innovators are doing across high growth tech and AI stocks and spot the next wave of potential winners.

With earnings still growing, the share price trailing analyst targets and a substantial intrinsic discount implied by some models, the real debate now is whether NTT is quietly undervalued or if the market is already pricing in its AI driven future growth.

Most Popular Narrative Narrative: 13.4% Undervalued

Against a last close of ¥155.1, the most popular narrative points to fair value near ¥179, implying the market may be underestimating NTT’s cash generation.

NTT's investment in proprietary technologies (e.g., IOWN, advanced LLMs like tsuzumi 2, and photonics) positions it to benefit from surging connectivity and low-latency compute requirements driven by the global rollout of 5G/6G and edge computing. These developments underpin sustainable earnings growth and an expanded addressable market for high-value services, supporting future margin and EBIT expansion.

Read the complete narrative.

Want to see how steady revenue growth, fatter margins, and a slightly lower future multiple still add up to upside from here? The full narrative unpacks the earnings road map, the share count shift, and the exact assumptions that need to line up for that fair value to hold. Curious which levers matter most for NTT’s AI era re-rating?

Result: Fair Value of ¥179.14 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent pressure on DOCOMO’s mobile revenues and heavy capex for data centers and next generation networks could cap margins and delay any AI era re rating.

Find out about the key risks to this NTT narrative.

Build Your Own NTT Narrative

If you see the story playing out differently or simply want to test your own assumptions, you can build a complete narrative in just a few minutes: Do it your way

A great starting point for your NTT research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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