Known for its high-performance wire cabling, Fujikura’s shares have soared over 400% this year, making it the best performer on the 225-issue Nikkei average. The company’s rapid rise will also see it join the MSCI Global Standard Index on November 25, the only Japanese addition this cycle.
Fujikura exemplifies a “picks and shovels” approach to AI investment, benefiting as tech giants pour resources into infrastructure like data centers and communications networks. Bloomberg estimates AI infrastructure will require at least US$1 trillion in spending globally, fueling demand for Fujikura’s fiber optic cables, renowned for their compact size and efficiency.
“The demand for data centers has skyrocketed since around 2022,” said Kazuhito Iijima, Fujikura’s CFO. “We didn’t fully grasp its scale initially, but this year, it became clear AI was driving it.”
The company’s rebound from its first loss in over a decade in 2020 has been remarkable. COVID-19 disruptions and US-China trade tensions had weighed on its performance. To mitigate potential risks under US President-elect Donald Trump’s return, Fujikura has aligned with the Build America, Buy America Act (BABA), establishing a US production base for ultra-high-density optical cables to ensure compliance and secure its position in its largest market.
Fujikura’s rise mirrors broader momentum in the cryptocurrency and AI sectors, which have seen renewed interest following Trump’s election. The president-elect’s pro-tech policies and growing institutional backing for AI signal a new era of innovation-driven growth.
Looking ahead, Fujikura is preparing for the next frontier: nuclear fusion. With billionaires like Sam Altman and Jeff Bezos backing the race for limitless clean energy, Fujikura anticipates a pivotal role in supplying essential cables and wires once the technology scales.
