The Japanese fibre-optic cable specialist Fujikura is placing a big bet on the infrastructure needs of generative AI. Armed with a freshly minted US subsidiary and a war chest of ¥178.9 billion in liquid assets, the company has laid out a revenue target of ¥1.24 trillion for fiscal 2027. The numbers underpinning that goal — an operating profit forecast of ¥211 billion and net income of ¥156 billion — underscore just how deeply the AI boom has reshaped its order books.
For now, the market is taking a measured view. Fujikura’s stock edged up just 0.07% on the day to €34.42, a far cry from the double-digit monthly gains it has posted recently. Over the past 30 days the shares have climbed 18.65%, and the weekly advance stands at 11.05%. That momentum has been driven by a string of blockbuster earnings releases. In the fourth quarter alone, revenue hit roughly ¥327 billion, while earnings per share jumped from ¥19.35 to ¥27.28. The net profit margin widened from 9.3% to a robust 13.3%, lifting full-year net profit by 72.5% to ¥156 billion — a figure that precisely matches the 2027 target.
The company’s financial foundation is solid enough to support the capital spending required to stay ahead of hyperscaler demand. Last year Fujikura poured ¥36.2 billion into plant and equipment, while its operating cash flow reached a healthy ¥132.9 billion. Meanwhile, the parent company — reporting on a standalone basis — saw revenue grow to nearly ¥220 billion and net profit almost double to ¥94 billion. That firepower will be essential as the group expands production in Japan and the United States. Its newly formed American unit, Fujikura Optical Cable Systems LLC, begins operations this month and is tasked with channelling investment into the country’s AI infrastructure build-out.
Should investors sell immediately? Or is it worth buying Fujikura?
The stock’s valuation, however, is enough to give any value-oriented investor pause. With a price-to-earnings ratio approaching 68, Fujikura trades at more than four times the average of its Japanese electronics peers, which sit at just 14.6. The relative strength index of 56.5 suggests the shares are not technically overbought, but the annualised volatility of 146.81% highlights the skittishness of the investor base. Any hiccup in the US capacity expansion could trigger a sharp correction, given how much future growth is already baked into the current price.
Management remains optimistic and has raised the dividend to ¥225 per share. The company also reduced debt last year, with financing cash outflows of -¥111.3 billion, reflecting a deliberate effort to strengthen the balance sheet. Supply-chain disruptions and rising raw-material costs are still lurking risks, but the combination of a strong cash position, growing operating cash flow, and a clear line of sight on the AI infrastructure wave gives Fujikura a cushion that many of its competitors lack. For now, the story is about execution — and whether the stock can grow into its lofty multiple before the next earnings surprise lands.
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