Fujikura, an optical fiber cable maker, lost almost half its value in the week through May 20 following a disappointing earnings forecast and lackluster medium-term plan. The $40 billion selloff marked a sharp reversal from the company's all-time closing high on May 13, and shares remain trading almost 30% below that peak.
The rapid decline reflects investor concern that expectations for explosive growth in AI infrastructure may have outpaced manufacturers' ability to actually deliver the required capacity and products.
The sell-off signals a potential shift in market sentiment around AI-related stocks, as investors reassess the sustainability of the rally that has driven valuations for companies supporting artificial intelligence infrastructure.
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