19th century company’s shares soared 230% thanks to the rise of AI

At the close of trading on Friday, November 22, TPL shares were trading at $1.73 thousand. The market capitalization of the company founded in 1888 amounted to more than 40 billion dollars, that is, more than that of the largest oil services company in the United States, Halliburton. and the investment company State Street, the agency says.

TPL is headquartered in Dallas and has 100 employees. The company contributes its 3.53 thousand m2. Km of land for the construction of mining centers, battery stations and renewable energy facilities. In the future, its natural gas-rich territory will be of interest to technology giants such as Google, Microsoft and Amazon, which need cheap energy for their data centers, Bloomberg writes.

This is not the first time the decades-old company has attracted investor interest due to the rise of AI. Shares of Japanese company Fujikura, founded in 1910 but whose history dates back to 1885, have risen in price by 400% over the past year. At the close of the Tokyo Stock Exchange on November 25, its shares were worth 5.64 thousand yen.

Fujikura specializes in the production of fiber optic cables used in the construction of data centers. Among the company’s largest clients is the American Apple. “Demand for data centers has increased sharply since about 2022. We didn’t realize it then, but this year it became clear that it’s all about AI,” Fujikura CFO Kazuhito Iijima said in an interview with Bloomberg.

In early November, the agency reported that the world’s tech giants will spend $200 billion on AI development in 2024. In particular, Amazon plans to invest $75 billion in this area, Target*; up to $40 billion, Microsoft has already invested $14.9 billion in the quarter, and Alphabet is going to significantly increase spending.

* recognized as extremist in the Russian Federation, the company’s activities are prohibited.