Fabrinet provides advance-level optical packaging and precision optical, electro-mechanical, and electronic manufacturing services to original equipment manufacturers of complex products, such as optical communication components, modules and sub-systems, industrial lasers, automotive components, medical devices, and sensors... Show more
Fabrinet provides advanced optical packaging and precision optical, electro-mechanical, and electronic manufacturing services to original equipment manufacturers (OEMs) of complex products. The company specializes in high-mix, low-volume production of mission-critical components for industries like optical communications, automotive, industrial lasers, medical devices, and sensors. Its core business model encompasses process design, supply chain management, advanced packaging, assembly, and testing, leveraging facilities in Thailand, the U.S., Israel, and China for cost efficiency and IP protection.
In the competitive electronic manufacturing services (EMS) landscape, Fabrinet holds a strong position through expertise in precision optics and vertical integration in customized optics like lenses and prisms. This exposure to high-growth areas such as telecom/datacom and AI-driven high-performance computing (HPC) explains recent stock resilience, as surging demand for optical transceivers and silicon photonics supports revenue expansion amid broader tech sector trends.
Over the last 30 days, FN stock advanced +12% from a closing price of approximately $543 on March 10 to $610 on April 8. The movement was volatile and trend-driven, featuring sharp rallies to $612 on March 25 amid AI news, followed by dips to $492 on March 30 and recoveries, reflecting sector momentum with intermittent profit-taking.
For the past quarter, shares surged +36% from $447 on January 9 to $610. The uptrend was steady overall, punctuated by post-earnings gains in early February and late-March surges, outperforming the electronics components industry and broader tech sector amid AI tailwinds.
The 30-day rally was propelled by AI-centric developments and positive analyst sentiment. A key catalyst was the March expansion of the iPronics partnership for silicon photonics (SiPh) packaging and assembly for next-generation AI optical circuit switches, sparking a 12.7% single-day gain. Coverage at the Optical Fiber Communication (OFC) Conference highlighted growth prospects, reinforcing optical communications momentum.
Analyst actions contributed, with firms like Rosenblatt raising targets to $715 and Wolfe upgrading to Outperform, citing a favorable environment. Market sentiment shifted positively on Fabrinet's role in AI bandwidth solutions and HPC, amid broader enthusiasm for photonics packaging. Sector influences, including datacom interconnect scaling, offset minor headwinds like valuation concerns, driving net upward price action.
The quarterly +36% gain built on sustained narratives from Q2 FY2026 earnings in early February, where Fabrinet reported record revenue of $1.13 billion (up 36% YoY) and non-GAAP EPS of $3.36, beating estimates. Guidance for Q3 revenue of $1.15-1.20 billion and EPS $3.45-3.60 signaled continued strength in telecom (up 59%) and datacenter interconnects, fueled by AI infrastructure demand.
Industry tailwinds in optical communications and HPC scaling dominated, with easing datacom constraints. Macro conditions like persistent AI capex from hyperscalers amplified exposure. Institutional interest grew, as evidenced by fund accumulation in AI mobilizers, while competitive positioning in precision optics sustained outperformance versus peers like Celestica (CLS).
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Investors should monitor Q3 FY2026 earnings around early May, with consensus revenue at $1.18 billion and EPS $3.55, for updates on optical segment growth and guidance. Ongoing AI infrastructure demand, particularly in datacom transceivers and silicon photonics, remains critical amid hyperscaler spending. Industry trends like co-packaged optics and OFC developments could influence sentiment.
Strategic partnerships, such as further iPronics expansions, and macro factors including interest rates and supply chain dynamics in Southeast Asia warrant attention. Risks include FX headwinds (e.g., Thai baht), competition in EMS, and potential AI spending slowdowns, alongside catalysts from analyst revisions and institutional flows.
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FN's Aroon Indicator triggered a bullish signal on March 06, 2026. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 285 similar instances where the Aroon Indicator showed a similar pattern. In of the 285 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
The Momentum Indicator moved above the 0 level on March 31, 2026. You may want to consider a long position or call options on FN as a result. In of 81 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for FN just turned positive on April 07, 2026. Looking at past instances where FN's MACD turned positive, the stock continued to rise in of 44 cases over the following month. The odds of a continued upward trend are .
FN moved above its 50-day moving average on March 31, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where FN advanced for three days, in of 341 cases, the price rose further within the following month. The odds of a continued upward trend are .
The RSI Oscillator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where FN declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
FN broke above its upper Bollinger Band on April 10, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 76, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. FN’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (10.858) is normal, around the industry mean (5.620). P/E Ratio (63.483) is within average values for comparable stocks, (52.051). FN's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (1.206). FN has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.021). P/S Ratio (6.150) is also within normal values, averaging (3.641).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of precision optical, electro-mechanical and electronic manufacturing services
Industry ElectronicComponents