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Posted On: 11/27/2024 3:45:49 PM
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AI Boom Transforms Nearly 150-Year Old Japanese Firm into the Country’s Hottest Stock
The current boom in AI has turned a previously little-known Japanese company into a star on the stock market. Fujikura, which has been in existence for the past 139 years, has shot to fame because of its longstanding excellence in making cables for data centers.
Since the beginning of this year, the shares of this company have seen a whopping 400% rise in value. Consequently, Fujikura is top of the best performing stocks on the Stock Average Index of the Nikkei 225. Because of this stellar performance, the company made its debut on the MSCI’s worldwide standard indexes. This is a notable feat given that Fujikura is the sole enterprise from Japan to be included while eight companies from the country lost their positions on this prestigious listing the same day that the data center cable maker made its entry.
During the California Gold Rush in the 1840s to 1850s, fortunes were made by firms that sold shovels and picks; the tools used to dig up the earth in the quest for gold. Fujikura can be seen in the same light. Tech companies are racing to build out their data center capacity in order to claim a share of the growing market for AI solutions, and Fujikura is providing the highly sought-after cabling needed to wire those data centers and connect them to the power grid.
So, why is this little-known Japanese company suddenly attracting so much attention? The answer lies in three words, fiber optic cables. Fujikura manufactures fiber optic cables, and the company has earned a remarkable industry-wide reputation for producing cables having the smallest diameter. So far, no other firm beats Fujikura at this. Consequently, the firm’s cables have risen in demand because companies building data centers can install these cables without doing any extra tunneling.
The company’s CFO, Kazuhito Iijima, says the demand for their products started rising back in 2022. He reveals that the company didn’t immediately know why so many data centers were being constructed at the time and it was only this year that it dawned upon them that artificial intelligence requirements were behind this surge.
Bloomberg News analysts say at least a trillion dollars will be invested in constructing communications networks, data centers and setting up power supplies for the AI industry. McKinsey & Company forecasts a 33% yearly growth in data center demand around the world until 2030. These projections show that companies like Fujikura are well positioned to benefit from this boom in AI.
Other companies like McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) that extract minerals like gold and copper, critical for establishing AI infrastructure, could also see their revenues grow significantly as the artificial intelligence industry continues to require more resources.
NOTE TO INVESTORS: The latest news and updates relating to MUX are available in the company’s newsroom at https://nnw.fm/MUX
Please see full terms of use and disclaimers on the NetworkNewsWire website applicable to all content provided by NNW, wherever published or republished: http://NNW.fm/Disclaimer
The current boom in AI has turned a previously little-known Japanese company into a star on the stock market. Fujikura, which has been in existence for the past 139 years, has shot to fame because of its longstanding excellence in making cables for data centers.
Since the beginning of this year, the shares of this company have seen a whopping 400% rise in value. Consequently, Fujikura is top of the best performing stocks on the Stock Average Index of the Nikkei 225. Because of this stellar performance, the company made its debut on the MSCI’s worldwide standard indexes. This is a notable feat given that Fujikura is the sole enterprise from Japan to be included while eight companies from the country lost their positions on this prestigious listing the same day that the data center cable maker made its entry.
During the California Gold Rush in the 1840s to 1850s, fortunes were made by firms that sold shovels and picks; the tools used to dig up the earth in the quest for gold. Fujikura can be seen in the same light. Tech companies are racing to build out their data center capacity in order to claim a share of the growing market for AI solutions, and Fujikura is providing the highly sought-after cabling needed to wire those data centers and connect them to the power grid.
So, why is this little-known Japanese company suddenly attracting so much attention? The answer lies in three words, fiber optic cables. Fujikura manufactures fiber optic cables, and the company has earned a remarkable industry-wide reputation for producing cables having the smallest diameter. So far, no other firm beats Fujikura at this. Consequently, the firm’s cables have risen in demand because companies building data centers can install these cables without doing any extra tunneling.
The company’s CFO, Kazuhito Iijima, says the demand for their products started rising back in 2022. He reveals that the company didn’t immediately know why so many data centers were being constructed at the time and it was only this year that it dawned upon them that artificial intelligence requirements were behind this surge.
Bloomberg News analysts say at least a trillion dollars will be invested in constructing communications networks, data centers and setting up power supplies for the AI industry. McKinsey & Company forecasts a 33% yearly growth in data center demand around the world until 2030. These projections show that companies like Fujikura are well positioned to benefit from this boom in AI.
Other companies like McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) that extract minerals like gold and copper, critical for establishing AI infrastructure, could also see their revenues grow significantly as the artificial intelligence industry continues to require more resources.
NOTE TO INVESTORS: The latest news and updates relating to MUX are available in the company’s newsroom at https://nnw.fm/MUX
Please see full terms of use and disclaimers on the NetworkNewsWire website applicable to all content provided by NNW, wherever published or republished: http://NNW.fm/Disclaimer
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