TOKYO, 24 October 2025 – Fujikura Ltd. (TSE: 5803), a 139-year-old Japanese wire and optical fibre manufacturer, has become one of the standout performers on the Nikkei 225, as soaring global demand for artificial intelligence (AI) data centres drives investor optimism.
The Tokyo-based firm’s shares have surged more than 160% since the start of 2025, far outpacing the Nikkei’s 22% rise to a record high. Fujikura’s market capitalization now stands at approximately US$33 billion, putting it on par with major industrial players such as Daikin Industries and Komatsu Ltd.
Investor enthusiasm gained further momentum this week after Sanae Takaichi was elected Japan’s new prime minister, following her pledge to boost targeted investment in AI infrastructure and strategic technologies. Fujikura’s shares rose another 6% in the days following her victory.
Riding the AI Wave
Founded in 1885 during Japan’s Meiji-era modernization, Fujikura began as a silk and insulated wire manufacturer before producing the world’s first optical fibre in 1959. Today, its fibre technology plays a central role in powering high-speed data transmission within AI data centres across the globe.
Around 75% of Fujikura’s optical fibre output is exported, with major customers including Alphabet Inc. (Google’s parent company). The company has been expanding production capacity to meet surging global demand. In February 2025, Fujikura added capacity at one of its existing facilities, and in August, it announced plans to invest ¥45 billion (US$298 million) to build a new optical fibre manufacturing plant.
“Generative AI is a big theme and key driver for the Japanese market,” said Kazuaki Shimada, Chief Strategist at IwaiCosmo Securities. “Now investors have started looking for new targets that may become the next Fujikura.”
The Broader AI Stock Rally
The rapid rise of AI-related equities in Japan mirrors global trends tied to the so-called “Magnificent Seven” technology leaders in the U.S., including Nvidia, Amazon, and Microsoft. In Japan, that momentum has flowed into suppliers within the AI hardware ecosystem such as Advantest Corp., Tokyo Electron Ltd., and SoftBank Group Corp., which together account for much of the Nikkei’s gains since early September.
Fujikura has emerged as a top pick among investors seeking exposure to the AI infrastructure boom — particularly those looking beyond the usual semiconductor and electronics giants.
Other notable beneficiaries include Mitsui Kinzoku, a producer of data centre materials, which has jumped 192% this year, and JX Advanced Metals, whose stock has risen fourfold since its March debut.
Legacy Meets Innovation
Fujikura’s transformation from a traditional wire producer into a critical enabler of the AI-driven internet economy underscores how Japan’s legacy manufacturers are reinventing themselves for the digital era.
With AI investment surging globally and Japan’s government positioning the country as a regional innovation hub, analysts say Fujikura’s century-old expertise is well-placed for long-term growth.
