Story
Prysmian Shares Rise on €5.5 Billion Optical Cable Deal with Molex
Summary
The Italian cable manufacturer secured a ten-year agreement to supply optical cables for data centers, part of a broader strategy expected to generate over €10 billion in additional value by 2035.
Shares of Prysmian (BIT:PRY) rose 2% after the cable manufacturer announced a significant long-term supply agreement with Molex, a subsidiary of Koch Inc., valued at up to €5.5 billion.
Details of the Agreement
The deal, which spans a period of up to ten years, involves the supply of optical cables for use within data centers, according to a company statement. The agreement includes a substantial upfront payment of €550 million from Molex to Prysmian, securing a key supply chain for the growing data infrastructure market.
This contract underscores the increasing demand for high-capacity connectivity driven by artificial intelligence, cloud computing, and the overall expansion of digital services. For investors, the long-term nature of the agreement provides significant revenue visibility for Prysmian's an optical cable division.
AdBroader Commercial Strategy
Prysmian stated that the Molex agreement is a component of a wider set of new contracts and commercial initiatives targeting hyperscalers and data center infrastructure providers. The company projects that these combined arrangements will generate an additional cumulative value of over €10 billion through 2035.
This figure represents incremental value when compared to the company's 2025 baseline, signaling a strategic pivot to capture a larger share of the high-growth data center market. The deals position Prysmian as a critical supplier for the infrastructure powering the digital economy.
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