Fujitsu (TSE:6702) Valuation in Focus After Groundbreaking Supercomputer Partnership with NVIDIA and RIKEN

Fujitsu (TSE:6702) is drawing new attention from investors after news of its partnership with NVIDIA and RIKEN to codesign next-generation supercomputers. The collaboration marks a meaningful advance in Japan’s high-performance computing and AI capabilities.

See our latest analysis for Fujitsu.

Fujitsu’s momentum is clearly building, with shares up 8% over the past month and boasting an impressive year-to-date share price return of 48%. Looking further out, the company has delivered a 51% total shareholder return in the past year and a remarkable 127% over three years. The continuing announcements around cutting-edge partnerships and new HPC deployments have reinforced growth expectations and seem to be fueling investor optimism.

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But with Fujitsu’s shares already soaring and future growth widely discussed, the key question for investors now is whether there is still untapped value to be found or if the market is already reflecting all the upside.

Most Popular Narrative: 10% Overvalued

Fujitsu’s most followed narrative places its fair value just below the latest market price, suggesting the current rally may have surpassed fundamental growth. With valuation models factoring in operational improvements and future profit margins, analysts lay out the reasoning behind their fair value calculations.

Substantial growth in modernization and Uvance businesses (modernization revenue up 44% YoY, Uvance revenue up 52% YoY, Uvance now 29% of segment sales) reflects successful transition away from legacy hardware towards high-margin, recurring cloud, consulting, and advanced IT services, which should structurally lift net margins.

Read the complete narrative.

Want to know the growth blueprint behind this high valuation? The key element of this narrative is record-breaking earnings and a future profit multiple usually associated with tech leaders. Interested in which bold financial projections support that price target? Dive deeper to see the surprising numbers that drive this fair value calculation.

Result: Fair Value of ¥4,125 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, continued weakness in overseas markets and reliance on mature domestic demand could challenge Fujitsu’s long-term growth if these trends persist.

Find out about the key risks to this Fujitsu narrative.

Build Your Own Fujitsu Narrative

If you see Fujitsu’s story differently or want to analyze the figures yourself, you can craft your own analysis in just minutes. Do it your way

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding Fujitsu.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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