Fabrinet (FN) Rose Following the Rising Demand for Data Center Spending

5 days ago 7

Soumya Eswaran

Tue, November 25, 2025 astatine 6:01 AM CST 3 min read

Investment absorption company First Pacific Advisors recently released its “FPA Queens Road Small Cap Value Fund” third-quarter 2025 capitalist letter. A transcript of the missive tin be downloaded here. In the 3rd quarter, the money returned 7.46% compared to a 12.60% instrumentality for the Russell 2000 Value Index. In the archetypal 3 quarters of 2025, the Fund returned 13.77%, compared to 9.04% for the index. As the firm’s absorption is connected a diligent, disciplined, and diligent process, it expects the money to outperform successful down markets and way successful speculative markets. Additionally, you tin cheque the fund’s apical 5 holdings to find its champion picks for 2025.

In its third-quarter 2025 capitalist letter, the FPA Queens Road Small Cap Value Fund highlighted stocks specified arsenic Fabrinet (NYSE:FN). Fabrinet (NYSE:FN) offers optical packaging and precision optical, electro-mechanical, and physics manufacturing services. The one-month instrumentality of Fabrinet (NYSE:FN) was -4.85%, and its shares gained 76.79% of their worth implicit the past 52 weeks. On November 24, 2025, Fabrinet (NYSE:FN) banal closed astatine $462.67 per share, with a marketplace capitalization of $16.576 billion.

FPA Queens Road Small Cap Value Fund stated the pursuing regarding Fabrinet (NYSE:FN) successful its 3rd 4th 2025 capitalist letter:

"Fabrinet (NYSE:FN) is simply a declaration shaper specializing successful optical networking instrumentality and modules. This is analyzable enactment astatine tiny scales, and Fabrinet dominates its niche. Fabrinet has experienced awesome humanities gross maturation and increasing operating margins. The company’s highest bandwidth products are uncovering expanding request successful information centers, particularly those information centers utilized to bid artificial quality models. In 2023, Fabrinet disclosed that Nvidia is simply a 10% customer. The banal terms has astir doubled since April connected rising expectations for information halfway spending. -We judge specified spending whitethorn person gotten up of itself and person been trimming. But the request for precocious bandwidth networking volition continue, Fabrinet dominates its halfway telecom and information halfway markets and has prudently diversified into car components and laser assembly. We judge Fabrinet volition beryllium a “compounder” for galore years , and we proceed to clasp a position."

Fabrinet (NYSE:FN) is not connected our database of 30 Most Popular Stocks Among Hedge Funds. According to our database, 32 hedge money portfolios held Fabrinet (NYSE:FN) astatine the extremity of the 2nd quarter, compared 38 successful the erstwhile quarter. Fabrinet (NYSE:FN) generated $978 cardinal successful gross for fiscal Q1 2026, expanding 22% year-over-year, and an 8% from erstwhile quarter. While we admit the imaginable of Fabrinet (NYSE:FN) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.