James Smith identified Toto as a "hidden AI beneficiary" because, within its toilet business, it has semiconductors that create components for semiconductor manufacturing. He believes the market undervalues this AI-related semiconductor division, and the company represents "quite a good investment for us so far with plenty of upside." LONG due to the undervaluation of its AI exposure and potential for a rerating as the market recognizes the value of its semiconductor components. The semiconductor division may not be material to overall profits, or AI-related demand may not meet expectations.