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Nikkei's Nikkei-listed Fujikura, a century-old Japanese company, rides the AI data centres boom to become a Nikkei standout

Nikkei's Nikkei-listed Fujikura, a century-old Japanese company, rides the AI data centres boom to become a Nikkei standout

Fujikura, a Japanese wire manufacturer that has been in business for over a century, is a notable stock in the Nikkei gauge. This is because investors expect the company to benefit from an increase in investment in artificial-intelligence data centres using its optical fibers.

This week, the firm gained another 6% in value after Sanae Taichi was elected Prime Minister following her pledges to invest heavily in AI and key industries.

Fujikura shares have risen 160% since the beginning of 2025. This is a far greater increase than the Nikkei, which has only risen 22%. The company's $33 billion market value is now comparable to that of other well-known Japanese companies such as Daikin, which makes air conditioners, and Komatsu, which manufactures construction equipment.

The fortunes of "Magnificent 7" U.S. tech companies, such as Nvidia and Amazon, at the forefront in AI development, are increasingly linked to global equity markets.

This euphoria in Japan has spread to the major AI suppliers and investors, including Advantest Tokyo Electron, and SoftBank Group. These firms are responsible for the majority of Nikkei gains since early September.

Fujikura was founded in Japan during the Meiji Era (1885-1912) of modernisation. Investors have been searching the AI supply chain for the next winners.

Kazuaki Shimada is the chief strategist of IwaiCosmo Securities. "Generative AI has become a major theme for the Japanese stock market," he said. Investors are now looking at new targets which could be the next Fujikura.

Mitsui Kinzoku is another AI-related company that has soared 192% in 2025. JX Advanced Metals, another supplier, has seen its stock rise fourfold since March's market debut.

Fujikura began as a manufacturer of silk and insulated cables, but in 1959 it produced the first optical fiber. These fibres are essential for AI data centres. About 75% of Fujikura's production is sold to foreign customers such as Alphabet, the owner of Google.

Fujikura's spokesperson confirmed that the company had increased its fibre production capacity at its existing facility by a third in February and announced in August that it would invest 45 billion yen (US$298.45 Million) in order to build a second factory. ($1 = 150.7800 yen)

(source: Reuters)