Fujikura’s Meteoric Rally Hits a Speed Bump as Investors Cash In on AI-Fueled Gains
Published on 06/23/2026 at 16:07 | Redaktion boerse-global.de
The Japanese government is pouring an estimated $2.3 trillion into strategic technology sectors by 2040, and Fujikura, a key supplier of optical components for data centres, stands squarely in the crosshairs. That backdrop, combined with a hefty profit forecast upgrade, sent shares rocketing 56.64% in just seven trading days. Yet the euphoria has given way to a sharp bout of profit-taking, with the stock shedding nearly 11% in German trading on Tuesday.
The Tokyo exchange had earlier responded to the buying frenzy by widening Fujikura’s daily price limit to ¥10,165, after the stock closed at ¥6,161 – the upper limit – on Monday. The move gives the shares room to run, but investors appear to be taking a breather. In Frankfurt, Fujikura changed hands at €35.00, down 10.71% from Monday’s close of €39.20. The annualised 30-day volatility of around 161% underscores the ferocity of the swings.
The catalyst for the rally was twofold. On 18 June, management raised its operating profit forecast for the year ending March 2027 to ÂĄ310bn, from ÂĄ211bn previously. Revenue is now seen at ÂĄ1,462bn, compared with an earlier estimate of ÂĄ1,243bn. For the first half alone, operating profit is expected to reach ÂĄ174bn, a staggering 89% above the original plan. Fujikura cited hyperscaler orders for optical components, higher selling prices, and a smaller-than-feared impact from hydrogen supply constraints as the main drivers.
Should investors sell immediately? Or is it worth buying Fujikura?
That upgraded outlook was given a further seal of approval by Nomura Securities, which kept its buy rating and lifted its price target to ¥7,000 from ¥5,500. The broker shifted its focus from traditional fibre-optic capacity constraints to the fast-growing hyperscaler segment, where demand for optical components is less tied to fibre production limits. The new assessment reframes Fujikura’s growth path as one driven by data-centre infrastructure and artificial intelligence demand, not just the core cable business.
Despite the bullish signals, the scale of the recent move – including two consecutive limit-up sessions in Tokyo – has prompted investors to lock in profits. The stock’s relative strength index sits at 65.7, edging closer to overbought territory. Analysts at FISCO are now watching the May high of ¥7,933. A breakout above that level could trigger a wave of short covering, especially with the expanded trading band providing technical headroom. For now, all eyes are on execution. The first-half results, due by 30 September 2026, will be the real test of whether Fujikura can turn those hyperscaler orders and price gains into reported earnings.
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