Japanese optical fiber cable maker Fujikura, which supplies fiber-optic cables and connectors for data centers, lost nearly half its value in the week to May 20 after it issued a disappointing earnings forecast and medium-term plan.

The company projected 315 billion yen (US$1.98 billion) in operating income for the fiscal year starting April 2028, below the 455 billion yen (US$2.86 billion) analyst average.

Fujikura said production capacity will remain insufficient even after a new SWR factory at Sakura Works in Chiba Prefecture comes online. The plant will make Spider Web Ribbon and related Wrapping Tube Cable products.

The selloff also hit Furukawa Electric and Sumitomo Electric Industries, two Japanese cablemakers that sell data-center fiber products through their data center solutions and network solutions businesses.

The broader concern is that AI data-center projects may face delays despite strong demand, as material shortages and supply-chain constraints limit buildouts.

Investors are also watching co-packaged optics, a technology designed to improve power efficiency and density in AI data centers, for any future effect on fiber demand.

🔗 Source: Bloomberg

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