Fabrinet (NYSE:FN) is one of the AI Stocks in the Spotlight for Investors. On December 15, Susquehanna initiated coverage on the stock with a “Positive” rating and set a price target of $550.00.

Fabrinet holds a strong position in the optical networking market, with analysts viewing the stock well positioned to benefit from sustained infrastructure and AI tailwinds.

The firm anticipates the stock to capitalize on expanding opportunities in optical networking, which includes transceivers, DCI (Data Center Interconnect), and CPO (Co-Packaged Optics) technologies.

“Fabrinet has so far tremendously benefited from the inflection of transceivers in data centers and is set to further benefit from multiplying opportunities in optical networking (transceivers, DCI, CPO), with an emerging story in HPC contract manufacturing for AI servers to boot. We initiate with a Positive rating and $550 PT (~39.5x 2026E EV/NOPAT).”

Fabrinet (NYSE:FN) offers optical packaging, along with precision optical, electro-mechanical, and electronic manufacturing services.

While we acknowledge the risk and potential of FN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FN and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.