Liontrust Sustainable Future Defensive Managed Fund on Fujikura
Thesis
Liontrust bought Fujikura for its ultra-high-density optical fibre and cabling used to connect equipment inside AI data centres. Higher-density fibre reduces space needs and cabling complexity, while high-bandwidth links between GPUs reduce communication bottlenecks as AI workloads become more demanding. The fund sees a strong competitive position in these advanced connectivity products and an opportunity to capture ongoing AI infrastructure spending. Fujikura also identified data-centre solutions as a key growth priority in its corporate plan through 2028.
“Fujikura’s advanced high-density fibre solutions give it a strong competitive position in this market, leaving it well placed to benefit from continued investment in AI infrastructure.”
Key risks
- A meaningful slowdown in AI infrastructure capital expenditure or its growth rate.
- Sharp valuation and positioning-driven volatility in AI-linked stocks.
- Inflation and rising bond yields pressuring growth-equity valuations.