<div id="readability-page-1" class="page"><div><p>Tokyo Electron (TSE:8035) has announced an annual dividend of ¥364 per share for the fiscal year ended March 31, 2026. This compares with ¥327 per share a year earlier and is payable on June 2, 2026.</p> <p>See our latest analysis for Tokyo Electron.</p> <p>The share price has risen 38.99% year to date to ¥51,330.0, while the 1 year total shareholder return of 125.61% and 5 year total shareholder return of 257.69% point to strong longer term momentum alongside recent dividend news.</p> <p>If this kind of momentum has your attention, it could be a good moment to scan other chip related opportunities using our 46 AI infrastructure stocks</p> <p>So with the stock up 38.99% year to date and trading only about 3% below the ¥52,654 price target, is Tokyo Electron still offering value, or is the current price already reflecting future growth expectations?</p> <h2>Most Popular Narrative: 30% Undervalued</h2> <p>At a last close of ¥51,330, the most followed narrative places Tokyo Electron's fair value around ¥51,486, suggesting the shares sit close to that anchor while still framed as modestly undervalued.</p> <blockquote> <p><em>The global move toward digital transformation (AI, cloud computing, IoT, 5G/6G, and edge computing) remains firmly intact, ensuring high wafer volumes and continuous technology migration; this underpins long-term demand for Tokyo Electron's tools and boosts the outlook for recurring revenue from both new equipment sales and an expanding installed base. Despite near-term customer investment pauses and a 6-month delay in some projects, there is no evidence of order cancellations or a change in the long-term growth trajectory, indicating that any revenue headwinds and margin pressure from lower utilization rates are likely temporary, with a strong rebound expected as deferred demand materializes.</em></p> </blockquote> <p>Read the complete narrative.</p> <p>Want to see what sits behind that fair value line? The narrative leans on robust revenue expansion, firmer margins and a punchy future earnings multiple to make its case. The mix of global chip demand assumptions and projected profitability creates a tight valuation story that is all about how quickly those earnings compound.</p> <p><strong>Result: Fair Value of ¥51,486 (UNDERVALUED)</strong></p> <p>Have a read of the narrative in full and understand what's behind the forecasts.</p> <p>However, you still need to weigh the risk that prolonged customer capex delays or tighter export controls on China could unsettle revenue and sentiment around the stock.</p> <p>Find out about the key risks to this Tokyo Electron narrative.</p> <h2>Another Angle on Valuation</h2> <p>Analysts see modest undervaluation around ¥51,486, but the current P/E of 40.3x tells a tougher story. It is higher than the JP Semiconductor industry at 28.2x and above the 38.8x fair ratio. This points to less room for error if growth or margins disappoint.</p> <p>See what the numbers say about this price — find out in our valuation breakdown.</p> <h2>Next Steps</h2> <p>With mixed signals around valuation and growth expectations, it helps to see the full picture yourself and move quickly while sentiment is still forming. To weigh both the upside and the risks in one place, check out the 2 key rewards and 1 important warning sign</p> <h2>Looking for more investment ideas?</h2> <p>If you stop with just one stock, you risk missing other opportunities that could fit your goals even better, so put a few strong contenders on your radar.</p> <ul> <li>Target proven cash generators by reviewing companies with resilient finances using the solid balance sheet and fundamentals stocks screener (39 results).</li> <li>Hunt for mispriced quality by checking out the 17 high quality undervalued stocks before other investors crowd in.</li> <li>Spot future standouts early by scanning the screener containing 59 high quality undiscovered gems while they are still off most investors' screens.</li> </ul> <p><em> This article by Simply Wall St is general in nature. <strong>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.</strong> 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.</em></p></div></div>

TOELY

8035

<p>Tokyo Electron (TSE:8035) announced an annual dividend of ¥364 per share for FY ending March 31, 2026, up from ¥327 last year. The share price has increased 38.99% year-to-date to ¥51,330. Analysts suggest the stock is modestly undervalued with a fair value of ¥51,486. Despite some near-term investment pauses, long-term demand remains strong due to digital transformation trends. However, risks include potential delays in customer capex and tighter export controls on China.</p>

A Look At Tokyo Electron (TSE:8035) Valuation After Its Higher Annual Dividend Announcement