Tokyo: In a remarkable resurgence, Fujikura Ltd., a Japanese company founded in 1885, has emerged as a standout performer on the Nikkei 225 index. The company's stock has surged over 160% in 2025, significantly outperforming the Nikkei's 22% gain, driven by the global boom in artificial intelligence (AI) and data centre infrastructure.
Originally founded as a producer of silk and insulated wires, Fujikura has evolved into a leading producer of optical fibres, a critical component in AI data centres. The company pioneered optical fibre production in 1959 and now exports approximately 75% of its output to international clients, including tech giants like Alphabet.
To capitalise on the surging demand for AI infrastructure, Fujikura has expanded its production capacity, investing 45 billion yen (approximately $298 million) in a new factory. This strategic move positions the company to meet the increasing global need for high-performance optical fibres essential for AI data centres.
Fujikura's growth trajectory has been further bolstered by political developments in Japan. The recent election of Prime Minister Sanae Takaichi, who has pledged targeted investment in AI and other key industries, has provided additional momentum to the sector. This supportive policy environment enhances investor confidence in companies like Fujikura, which are integral to the AI supply chain.
Fujikura's success story mirrors a broader trend in Japan, where companies supplying critical components for AI infrastructure are experiencing significant stock gains. For instance, Mitsui Kinzoku, a manufacturer of materials for data centre servers, has seen its stock price increase by 192% in 2025. Similarly, JX Advanced Metals has witnessed its stock price quadruple since its market debut in March.
Fujikura's remarkable performance underscores the transformative impact of the AI data centre boom on traditional industries. By leveraging its legacy of innovation and aligning with global technological trends, Fujikura has positioned itself as a key player in the evolving AI ecosystem, offering valuable insights for investors and industry stakeholders alike.