The global boom in artificial intelligence (AI) has turned an obscure 139-year-old Japanese company into a stock market star.
Fujikura, which makes wire cabling for data centers, is the best performer on the 225-issue Nikkei stock average index, with its shares surging more than 400% this year. It will join the MSCI global standard indexes on Nov. 25 as the sole addition from Japan while eight other companies from the country will be removed.
The firm is a classic “picks and shovels” investment as tech companies and utilities pour money into building out the necessary infrastructure to support AI. Construction of the data centers, electricity supplies and communications networks needed for AI will require at least $1 trillion of spending, according to an analysis by Bloomberg News. The rapid growth of the industry has surprised Fujikura itself.