Fujikura Shares Nearly Halve, Erasing $40 Billion on Weak Forecast

2 articles · Updated · Bloomberg · May 25

$40 billion was wiped from Fujikura’s market value in the week through May 20 after the Japanese optical-fiber cable maker issued a disappointing earnings forecast and underwhelming medium-term plan.
Investors had treated Fujikura as an AI infrastructure winner, so the selloff became a test of how fragile the broader AI-driven stock rally can be when growth expectations slip.
Shares have since recovered part of the plunge, but they still trade nearly 30% below the record closing high reached on May 13.
The drop in the 141-year-old cable firm is sharpening scrutiny on AI-linked infrastructure stocks whose valuations have surged on demand for data-center and networking buildouts.

Fujikura's plunge was an AI reality check. Which other overvalued tech companies are showing the same warning signs?

Fujikura's stock crashed despite its award-winning tech. What did investors see in its plan that engineers missed?

After a $40 billion collapse, will shareholder activists now seize control of the 141-year-old Japanese giant?