Fabrinet (FN): A Bull Case Theory 

We came across a bullish thesis on Fabrinet on Make Money, Make Time’s Substack by Oliver | MMMT Wealth. In this article, we will summarize the bulls’ thesis on FN. Fabrinet’s share was trading at $451.16 as of December 16th. FN’s trailing P/E was 48.46 according to Yahoo Finance.

Fabrinet (FN) is a leading outsourced semiconductor assembly and test (OSAT) provider specializing in packaging and testing photonic modules, transforming raw silicon photonic chips into high-reliability transceivers for AI data centers. The company occupies a critical niche in the AI hardware supply chain, catering to the growing demand for high-performance computing infrastructure. FN’s financial outlook reflects strong growth, with estimated revenue growth of 27.9% and EBITDA growth of 30.9% in FY26, supported by expanding adoption of photonic transceivers across hyperscale data centers.

Its net income margin of 10.7% demonstrates the profitability of its specialized, high-precision operations. Despite this growth, FN’s stock trades at a forward EV/Sales of 3.8x, EV/EBITDA of 30.5x, and a forward P/E of 36.7x, indicating a market valuation that may not fully capture its strategic position in the AI infrastructure ecosystem. The company’s operational focus on complex, high-reliability modules gives it a competitive moat, as few players have the technical expertise or scale to serve hyperscale AI clients. As AI adoption accelerates and demand for photonic interconnects intensifies, Fabrinet is well-positioned to benefit from both revenue expansion and margin expansion.

Investors could see multiple catalysts for upside, including growth in high-margin photonic modules, further penetration into AI data center supply chains, and operational leverage that could improve profitability. Even without an immediate rerating, FN offers a compelling risk/reward profile given its exposure to AI-driven demand, strong growth trajectory, and specialized technology that underpins next-generation data center performance.

Previously we covered a bullish thesis on Fabrinet (FN) by Industrial Tech Stock Analyst in April 2025, which highlighted the strategic issuance of warrants to Amazon, signaling a key new customer. The company’s stock price has appreciated approximately by 126.71% since our coverage as market confidence in AI and data center demand grew. Oliver | MMMT Wealth shares a similar perspective but emphasizes broader operational growth and positioning in photonic modules.

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Disclosure: None.