Fabrinet
Information Technology · Electronic Manufacturing Services
Structural: FN is the dominant outsourced manufacturer for high-mix, low-to-mid volume optical assemblies - a niche the EMS giants ($JBL, $FLEX) avoid because of the optical-alignment expertise required. 6T and CPO. 6T design wins booked for FY27 ramp; (2) $NVDA is now a 10%+ customer with multi-product engagement spanning transceivers + cable assemblies; (3) lidar attach growing as $LAZR / Hesai / $MBLY programs ramp; (4) FCF conversion routinely 85%+ of net income, no debt, $900M+ net cash; (5) capacity build (Building 10) de-risks supply for AI cycle.
(1) customer concentration - top-5 customers ~60% of revenue, any program slip hits hard; (2) optical module ASPs compress as silicon photonics displaces discrete optics - long-term CPO transition could disintermediate FN's assembly value-add; (3) trades at premium multiple for an EMS; (4) FX (Thai baht) and Thailand political risk on the entire cost base; (5) telecom segment still secularly soft.
No major news in the last 7 days for FN - only listicles and opinion pieces, which we filter out by default. See everything anyway.
No key levels recorded for this ticker.