This AI-Driven Japanese Company’s Stock Has Soared 400% in 2024

AI companies are taking the center stage in investment circles and the tech community. NVIDIA is arguably the most popular AI stock right now having jumped almost 200% YTD in 2024. But guess what? It’s not just NVDA (or Taiwan Semiconductor!) whose stock is on the rise.

Thanks to the rise of AI, this Japanese stock has appreciated in price by more than 400% YTD in 2024. It has become a market sensation in Japan. The company is called Fujikura!

What does this company do?

So what does Fujikura Ltd even do? Manufacture semiconductors that are then used in AI-enabled chips? Or does it manufacture AI chips and people don’t know about it yet? No – Fujikura Ltd does none of that. In fact, the company is a manufacturer of wire cabling for data center.

The rapid expansion of AI-related industries is fueling massive investments in data centers, electricity grids, and communication networks

Given it’s stunning performance this year, on November 25, the company is set to be added to the MSCI Global Standard Indexes as Japan’s sole representative, while eight other Japanese firms are set to be dropped.

Also Read: Nvidia Surges Past Microsoft to Become World’s Most Valuable Company

As one of legendary investors has said “sell shovels during a gold rush”, I think this is the perfect example of what it means. While investors are looking at AI companies from the perspective of chip makers and semiconductor suppliers, we need to broaden our understanding about AI and the full AI value chain.

AI valuations are soaring in general due to the hype and rush of investor activity in this sentiment. Fujikura is valued at 1.9x EV/Revenue and 13.5x EV/EBITDA which is much lower than other AI companies.

Note: This is not financial advise. The story is for educational purposes only.