2024-05-16 02:57:05 ET
Summary
- Fabrinet business has steadily grown over the past decade, recently driven by the adoption of AI and growing datacom revenues.
- FN has a mix of businesses, with the AI business performing well but others being more mediocre.
- Expectations for the company may have risen too much as share gains outpaced profit growth, making the risk-reward proposition less compelling.
Shares of Fabrinet ( FN ) have proven to be a real long-term value creator here. The company has steadily grown the business over the past decade, but certainly in recent times, enthusiasm on the performance of the company has grown. This comes amidst growing datacom revenues, driven by the adoption of AI, which is offsetting the headwinds from automotive and telecom customers destocking....
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Fabrinet: An AI Play In The Making