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IPS gains momentum on AI infrastructure and subsea cable expectations

Mon Apr 27, 2026 2:00 pm JST Catalyst

IPS <4390> gained momentum in late morning trading, climbing to the 3,300 yen level for the first time in roughly six weeks. Driven by the rapid expansion of the generative AI market, investment demand for subsea fiber-optic cables is intensifying, particularly among U.S. hyperscalers. These cables serve as critical arteries for massive data volumes, making infrastructure expansion a priority.

While NEC <6701> leads the sector in Japan, opportunities are emerging for related firms. IPS, which provides international data lines and corporate connectivity in the Philippines, is participating in a consortium to build the "Candle" international subsea cable connecting Japan, the Philippines, and Singapore. The project, supplied by NEC and involving U.S. tech giant META PLATFORMS , has fueled expectations for mid-term business growth, drawing significant investor attention.

Source: MINKABU PRESS

*Translated by generative AI. Click here for the original article.

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