Fujikura's success is attributed to the increasing demand for data centers, which has skyrocketed since 2022 due to the rise of AI. The company specializes in fiber optic cables, with products that have some of the smallest diameters in the industry, allowing them to be used in narrow spaces without additional tunneling. The company has also identified nuclear fusion as the next big opportunity, hoping it will become a pillar of the industry from 2030 onwards.
Key takeaways:
- The global boom in AI has turned Fujikura Ltd., a 139-year-old Japanese company that makes wire cabling for data centers, into a stock-market star with its shares surging more than 400% this year.
- Fujikura Ltd. will join the MSCI global standard indexes on Nov. 25 as the sole addition from Japan while eight other companies from the country will be removed.
- The company gets over 70% of its revenue overseas, with about 38% coming from the US. Global data center capacity is expected to rise at an average rate of 33% annually through 2030.
- After being surprised by the AI boom, the company says it has already identified the next big opportunity — nuclear fusion. The prospect of theoretically limitless clean-energy has won the backing of multiple billionaires, including Sam Altman, Jeff Bezos and Bill Gates.