Cable maker Fujikura, which struggled through the 2020 pandemic, has now entered a period of unprecedented growth in the Japanese stock market, driven by strong demand for artificial intelligence systems and data center equipment.
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Fujikura was founded by Zenpachi Fujikura in 1885 and today thrives on strong demand for AI-related products and research projects. The company once produced wires with silk and cotton insulation; it subsequently specialized in advanced cables for the modern technology industry. In the Nikkei 225 Stock Average index, Fujikura securities turned out to be the most profitable – in 2024 they rose in price by more than 400%; the company also intends to enter the MSCI world stock index.
One of Fujikura’s most sought-after products is its ultra-thin fiber optic cables, which have one of the smallest diameters in the industry. These cables can be laid in confined spaces without the need for additional channels. One of Fujikura’s largest clients is Apple. Demand for the company’s data center products began to show significant growth in 2022, said its CFO Kazuhito Iijima, and at first this puzzled management; but later it became clear that the main driver of business growth and prosperity is AI.
For the current fiscal year, Fujikura expects operating profit of 104 billion yen ($674 million), which is 17% more than a year earlier. 70% of Fujikura’s revenue comes from outside Japan; 38% are in the USA. In 2020, the company showed a loss for the first time in a decade – it was associated with the pandemic, as well as with the escalation of tensions between the United States and China. To reduce future risks, Fujikura built a manufacturing facility in the United States. But she hopes for the best: until 2030, annual growth in data center capacity worldwide will be 33%, analysts predict. The company is also exploring promising markets, pinning its hopes, in particular, on the fusion reactor segment, which is likely to require large-scale solutions in the field of cable equipment.