Is Nidec’s New Tech Org And Urban Air Mobility Push Altering The Investment Case For Nidec (TSE:6594)?

• Nidec Corporation has implemented a series of organizational and personnel changes effective January 1, 2026, including creating new CTO Technology Planning and Intellectual Property departments and repositioning executive responsibilities for Chief Technology Officer Michio Kaida.
• By carving out dedicated planning and intellectual property functions and launching Urban Air Mobility and Inverter System Development projects, Nidec is sharpening its focus on technology-driven growth initiatives in emerging applications.
• Next, we will examine how the new Urban Air Mobility and Inverter System Development projects may influence Nidec’s broader investment narrative.

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Nidec Investment Narrative Recap

To own Nidec, you need to believe in its ability to convert its broad motor and electronics footprint into disciplined, higher quality earnings while managing compliance and restructuring risks. The latest CTO reorganization and creation of Urban Air Mobility and Inverter System Development projects appear incremental for now, with limited direct impact on the near term catalyst of restoring investor confidence after investigations and delayed filings, or on the key risk of execution missteps in ongoing structural reforms.

Among recent updates, the December 19, 2025 leadership change, with founder Shigenobu Nagamori stepping down as Chairman and CEO Mitsuya Kishida assuming the chair, frames this R&D reshuffle in a context of wider governance and oversight changes. For investors watching how Nidec balances new technology initiatives with cost cuts and business exits, the combination of refreshed board leadership and a more segmented technology and IP structure is an important part of assessing whether restructuring efforts can support more stable profitability.

Yet, despite these efforts, the unresolved investigations into mislabeling and trade compliance remain a risk investors should be aware of...

Read the full narrative on Nidec (it's free!)

Nidec's narrative projects ¥2,893.2 billion revenue and ¥247.5 billion earnings by 2028. This requires 3.7% yearly revenue growth and about ¥90.1 billion earnings increase from ¥157.4 billion today.

Uncover how Nidec's forecasts yield a ¥3195 fair value, a 51% upside to its current price.

Exploring Other Perspectives

Four members of the Simply Wall St Community currently see fair value for Nidec between ¥3,195 and about ¥4,722, showing a wide spread in expectations. You can weigh those views against the ongoing compliance and restructuring risks that could influence how the company’s performance ultimately lines up with any of these estimates.

Explore 4 other fair value estimates on Nidec - why the stock might be worth just ¥3195!

Build Your Own Nidec Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Nidec research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Nidec research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Nidec's overall financial health at a glance.

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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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