The Fujikura AI Boom gained fresh momentum this week, with shares climbing another 6% after Sanae Takaichi became prime minister and pledged focused investment in AI and other strategically important sectors. Fujikura’s market capitalization now sits alongside major Japanese industrial names like Daikin and Komatsu.
Global stock markets continue to revolve around the success of the “Magnificent Seven” U.S. tech leaders driving AI growth, including Nvidia, Amazon, and Microsoft. In Japan, investor excitement has flowed into companies aligned with the AI supply chain, with Advantest, Tokyo Electron, and SoftBank Group powering most of the Nikkei’s recent surge.
The Fujikura AI Boom has made the company a top target for investors exploring the broader infrastructure behind generative AI. Kazuaki Shimada of IwaiCosmo Securities noted that generative AI remains a defining theme for Japan’s stock market, with traders seeking the next breakout similar to Fujikura.
Japan’s broader AI infrastructure ecosystem is also on a tear. Mitsui Kinzoku, a key supplier of data center materials, has jumped 192% in 2025, while JX Advanced Metals has quadrupled in value since listing in March. It shows how the Fujikura AI Boom has helped lift an entire group of behind-the-scenes enablers.
Fujikura’s evolution has been dramatic. Founded as a maker of silk and insulated wires, it produced the world’s first optical fiber in 1959. Those fibers are now essential to AI data centers, and roughly three-quarters of output today ships overseas to companies like Alphabet, Apple, and other major cloud providers.
Chief Financial Officer Kazuhito Iijima admitted that the surge in demand took them by surprise. He said data center buildouts started accelerating in 2022, and only this year did it become clear that AI was the primary engine behind the spike.
Fujikura’s specialty is ultra-thin fiber optic cable that fits into tight spaces without costly tunneling work. With Bloomberg estimating at least $1 trillion needed for global AI-related infrastructure, this manufacturing advantage gives Fujikura a prime position in a massive investment wave.
The company boosted production capacity in February 2025 and committed 45 billion yen (about $298 million) to build another facility, signaling strong confidence in long-term AI demand.
The rapid gains have turned Fujikura from a low-profile manufacturer into one of Japan’s hottest stocks. It was the only Japanese company added to the MSCI global standard indexes in November 2024, even as eight others were removed.
Analysts see Fujikura as a classic “picks and shovels” play. Companies building the future of AI need advanced infrastructure, and Fujikura supplies a crucial link in that chain. The surge shows how established manufacturers with indispensable technology can seize oversized rewards when a new tech era takes hold.
Fujikura is currently the strongest performer on the Nikkei 225, skyrocketing more than 400% in 2024 and continuing higher through 2025 as optical fiber demand expands worldwide alongside AI adoption.
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