Fujikura's Shares on the Rise: Attracting Investors

TOKYO - Japan's Fujikura company is seeing a remarkable rise in the Nikkei index amid expectations of benefiting from investments in artificial intelligence efficiency centers.

This week, after Sanae Takaichi was elected prime minister, the company's shares gained 6% in line with investment commitments towards artificial intelligence and other strategic industries.

Since the beginning of 2025, Fujikura's shares have increased by more than 160%, surpassing the Nikkei's overall rise of 22%, which has reached an all-time high. The company's market value has reached approximately 33 billion dollars, competing with well-known Japanese manufacturers such as Daikin and Komatsu.

Fluctuations in global stock markets are increasingly linked to the fortunes of American technology companies known as the 'Magnificent Seven', which are pioneers in the development of artificial intelligence, such as Nvidia, Amazon, and Microsoft.

This enthusiasm in Japan has affected key suppliers and investors in the artificial intelligence sector, such as Advantest, Tokyo Electron, and SoftBank Group. These companies have accounted for a significant portion of the gains in the Nikkei since the beginning of September.

Fujikura, founded in 1885 during Japan's Meiji modernization period, has become a key focal point for investors in the artificial intelligence supply chain.

Kazuaki Shimada, chief strategist at IwaiCosmo Securities, stated, "Generative artificial intelligence is a major theme and driving force in the Japanese market. Investors are now looking for new targets that could be the next Fujikura."

Similarly, Mitsui Kinzoku, which manufactures materials for data center servers, is rising with an increase of 192% in 2025. Shares of another supplier, JX Advanced Metals, have quadrupled since the stock market began in March.

Fujikura, which initially produced silk and insulated wires, manufactured the world's first optical fiber in 1959. These fibers have become one of the main components of artificial intelligence data centers, supplying about 75% of the company's production to overseas clients such as Google's parent company Alphabet.

A spokesperson announced that Fujikura increased its fiber production capacity at its current facility in February and will open a new factory with an investment of 45 billion yen (298.45 million dollars) in August.