Fabrinet (FN) stock has surged 95% since early April, reaching all-time highs, with expectations for a strong fourth-quarter fiscal 2025 earnings release on August 18. The company provides precision parts for major tech firms, including Nvidia, which accounts for approximately 35% of Fabrinet’s FY24 revenue. Fabrinet’s FY24 revenue is projected to grow to $3.95 billion by FY26, up from $2.88 billion in FY24.
Fabrinet’s services are crucial for AI data centers and high-speed information transfer, further supported by its partnership with Amazon, which includes an agreement for Amazon to buy up to 381,922 shares at $208.48 per share. The company has averaged 13% revenue growth over the past five years and reported a 28% growth in GAAP earnings in the last four years.
Fabrinet’s balance sheet shows a strong position with $951 million in cash and cash equivalents, compared to $712 million in liabilities. The stock is trading at an all-time high of 32X forward earnings, prompting some investors to consider waiting for a pullback before purchasing.
