Fabrinet's stock has surged 88% since late April, driven by increases in capital spending from hyperscalers investing in AI data centers. However, the optics industry faces uncertainty following a disappointing earnings report from Coherent, which resulted in a significant drop in its stock price. Fabrinet's upcoming earnings performance is crucial to sustain investor confidence, as any negative results could lead to a sharp decline in its share price, mirroring Coherent's experience during this volatile earnings season.
Fabrinet shares have rallied 88% since April 21st due to positive news, largely driven by increased capital spending from hyperscalers on AI data center projects.
Despite its strong performance, Fabrinet faces a challenging environment as the optics sector has seen sell-offs following recent disappointing earnings, notably from Coherent.
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