Fujikura tumbles on weak outlook as AI infrastructure stocks retreat - 19 May 2026

As of May 19, today’s news is dominated by market fluctuations influenced by energy supply concerns and mixed sentiments in the technology sector. Fujikura has faced notable challenges, with its shares dropping sharply amid disappointing profit forecasts. The company anticipates operating income of approximately 2 billion dollars for the fiscal year starting in April 2028, significantly lower than analysts' average expectations. Despite experiencing double-digit growth from demand for optical cables and connectors in AI data centers, Fujikura's production capacity is expected to remain insufficient even with a new plant opening. Following its earnings release, Fujikura’s stock has plummeted by around 40% over four days, raising concerns about rising raw material costs, particularly amidst ongoing geopolitical tensions in the Middle East, as noted by various sources. Meanwhile, Prysmian shares weighed on Milan’s stock market, falling 5.04% amid uncertainty over tech-related infrastructure and a broader shift away from AI infrastructure stocks. Turning to market updates, the energy landscape in the UK is under scrutiny as Cornwall Insight forecasts a 13% increase in the domestic energy price cap, raising typical dual-fuel household bills to approximately 1,850 pounds annually, effective in July. Higher wholesale prices, impacted by interruptions in the Gulf region due to military actions, are driving this rise. Although a temporary ceasefire has offered some relief, dealers are wary of sustained high prices. Zooming out to the global scenario, tensions in the Middle East continue to exert pressure on oil prices and market stability. President Trump has renewed threats against Iran, suggesting a return to military engagement, drawing attention to how these dynamics could amplify risks associated with energy supply chains. Such instability is reflected in rising yields on US Treasury bonds, which have reached their highest levels in nearly two decades, increasing investor scrutiny over inflation-linked valuations in both equity and bond markets. Amidst these developments, leading market players like Corning are experiencing notable price declines following insider selling, with analysts suggesting potential rebounds based on historical price behaviors. Meanwhile, Commodities markets are being closely monitored for signs of long-term shifts as rising demand for energy and materials persists.