AI Infrastructure Play Fabrinet (FN) Gains Positive Coverage From Susquehanna

Fabrinet (NYSE:FN) is one of the AI Stocks in the Spotlight for Investors. On December 15, Susquehanna initiated coverage on the stock with a “Positive” rating and set a price target of $550.00.

Fabrinet holds a strong position in the optical networking market, with analysts viewing the stock well positioned to benefit from sustained infrastructure and AI tailwinds.

The firm anticipates the stock to capitalize on expanding opportunities in optical networking, which includes transceivers, DCI (Data Center Interconnect), and CPO (Co-Packaged Optics) technologies.

"Fabrinet has so far tremendously benefited from the inflection of transceivers in data centers and is set to further benefit from multiplying opportunities in optical networking (transceivers, DCI, CPO), with an emerging story in HPC contract manufacturing for AI servers to boot. We initiate with a Positive rating and $550 PT (~39.5x 2026E EV/NOPAT)."

Fabrinet (NYSE:FN) offers optical packaging, along with precision optical, electro-mechanical, and electronic manufacturing services.

While we acknowledge the potential of FN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 Trending AI Stocks on Wall Street and 10 AI Stocks on the Market’s Radar

Disclosure: None.