Fujikura Unwinds China JV and Lashes $1.9 Billion to US Hyperscaler Demand as Stock Rebounds From Patent Shock
Published on 07/11/2026 at 15:55 | Redaktion boerse-global.de
Fujikura ended one of its most eventful trading weeks on a cautiously optimistic note, closing Friday at €28.28 in Frankfurt after a 1.73% intraday gain. The mild finish belied a five-day stretch that lurched from a steep patent-related selloff to a sharp rebound spearheaded by chief executive Naoki Okada, all while the company unveiled its most aggressive strategic pivot in years.
The week’s drama began when the Technical Board of Appeal of the European Patent Office invalidated a key Fujikura patent, immediately scuttling a UK lawsuit against rival Sterlite Technologies. The decision accelerated a slide already underway: the stock had tumbled roughly 30% from its June 23 high of ¥7,068 and, by early July, was nursing a 14.47% loss over seven trading days — more than 40% below its May record. A broader rotation out of growth technology into value stocks, sparked by a selloff on the Nasdaq, compounded the pressure.
Okada moved to halt the bleeding during Thursday’s session. He told investors that the company’s annual targets were “not in danger” — a message echoed in the primary report as “not going to be missed.” Fujikura continues to receive orders from virtually every US hyperscaler for its fiber-optic cables, he said, adding that supply capacity is so tight some customers are accepting higher prices. His guidance already factors in the worst-case scenarios.
The market took notice. Fujikura shares surged 4.9% in Tokyo to ¥5,059, snapping a four-day losing streak. The Nikkei 225 climbed 1.2% to 68,557.73, boosted by semiconductor and data-center names. The CEO’s intervention provided a psychological floor, but analysts cautioned that the stock remains hostage to sentiment around AI infrastructure plays.
Should investors sell immediately? Or is it worth buying Fujikura?
Sandwiched between the patent blow and the rebound came a decisive strategic move. On July 10, Fujikura announced it would sell its entire 60% stake in the joint venture Fujikura FiberHome Opto-Electronics Material Technology to long-time partner FiberHome Telecommunication Technologies. The deal, valued at roughly ¥12 billion (about 500 million renminbi), is expected to close by September. The exit ends a partnership formed in 2009 and frees up capital and management attention for Fujikura’s priority market: the United States, where hyperscalers are racing to build out AI data centers.
That priority is expensive. The company is investing up to $1.88 billion in new fiber-optic cable production lines, with new plants planned in Sakura, Japan, and the US, aiming to triple capacity. The expansion comes on the back of record results: in the fiscal year ending March 2026, revenue topped ¥1 trillion for the first time, net profit surged more than 70%, and the information and communications unit alone contributed ¥152.7 billion in operating profit — over 80% of the group total. The board raised the dividend and effected a 6-for-1 stock split on April 1, 2026.
Yet the stock’s technical picture remains fragile. The 14-day relative strength index sits at 47.7, a neutral reading, but the 30-day annualized volatility of 128.89% is extraordinary for a large-cap industrial name. It points to a share price that is hyper-sensitive to every shift in the AI narrative. The broader market for physical data-center infrastructure grew 28% year-on-year in the first quarter, per Dell’Oro Group, and demand forecasts stretching two years out are already being exchanged between chipmakers and suppliers — but that long-term visibility hasn’t protected Fujikura from short-term whiplash.
Fujikura at a turning point? This analysis reveals what investors need to know now.
The China divorce, the massive US bet, and Okada’s personal pledge give the stock a clearer narrative than it had a week ago. Until second-quarter results land in August, however, the share price will probably dance to the tune of the overall tech mood. The CEO’s reassurances offer a buffer against the volatility that has defined this year — but not a guarantee that the ride is over.
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