Key Drivers
- Consistent margins
- Negative FCF
- Rich multiples
AIAI Summary
Fabrinet has shifted from a steady optical contract manufacturer to a high‑conviction AI/hyperscaler play where multi‑quarter ramps in co‑packaged optics, 800ZR, and SiPh could materially re‑rate growth and margins if Building 10 completes on schedule and yields scale as guided. The key risk is execution—elevated capex, swollen inventory/receivables, and customer concentration mean any ramp delays or lower yields would quickly compress cash flow and the richly priced multiple.
Price Chart
Financial Metrics
Deep Analysis
Research tool. Not personalized advice.
Fundamental Analysis
Key Financial Insights:
- •Consistent margins
- •Negative FCF
- •Rich multiples
FN maintains strong margins, ROA/ROE and ample liquidity but faces sharply deteriorating free cash flow, rising leverage and much higher valuation multiples amid growing inventories/receivables.
Price Behavior
Key Price Behavior Insights:
- •Below SMA
- •Lower highs
- •$500 bids held
Over the last month FN dropped ~7.3% to $506.27, trading below its last-month SMA (~$539.80) with a lower-high structure, buyers repeatedly defended ~$500 but a break below $489 risks further downside.
Repeated mean-reversion bounces around $500 amid short-term volatility and a ~7.3% decline over the last month
Sentiment & News
Key News Insights:
- •AI infrastructure
- •800ZR / SiPh
- •Institutional shifts
Fabrinet posted record Q2 FY26 revenue led by a 29% optical gain and a 473% sequential surge in HPC/AI sales, driven by 800ZR/co‑packaged optics partnerships and strong investor engagement that lifted shares and signals near‑term upside.
Strengthening AI/data‑center demand and production partnerships should materially boost near‑term revenue momentum and support further share‑price upside if demand sustains
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