Activist Palliser takes stake in toilet maker Toto in AI play

Activist fund Palliser Capital has taken a stake in Japanese washlet maker Toto, and is urging the company to boost promotion of its little-known chip parts business. Activist fund Palliser Capital has taken a stake in Japanese washlet maker Toto and is pushing the firm to ramp up promotion of its little-known chip parts business in a bid to unlock value from the artificial intelligence boom. The U.K.-based fund sent a letter to Toto's board last week calling for more disclosure about its advanced ceramics segment. The segment produces electrostatic chucks used in the manufacturing of NAND memory chips, and Palliser views the toilet maker as "the most undervalued and overlooked AI memory beneficiary," the documents show. A representative for Toto declined to comment. Insatiable demand for AI infrastructure has sent memory prices skyrocketing in recent months, boosting shares of chipmakers such as Kioxia Holdings to record highs.