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Nvidia’s spending wave has a spillover
Rosenblatt’s Mike Genovese raised Fabrinet’s price target to $715 from $550 and left the Buy rating in place. The pitch is pretty simple: Nvidia’s huge capacity and supply-chain commitments with optical component players could still wash downstream to Fabrinet, which makes the transceiver and co-packaged optics modules that keep AI hardware talking to itself.
The twist: no Nvidia investment, still a winner?
Fabrinet didn’t get the flashy Nvidia investment that Lumentum and Coherent did. But the analyst’s read is that this is one of those “close enough to the party” situations — if Nvidia is trying to lock down optical capacity, Fabrinet can still benefit as a key manufacturing partner in the ecosystem.
- Nvidia is investing $2B each in Lumentum and Coherent
- It’s also putting multi-billion-dollar purchase commitments behind both
- Rosenblatt thinks that strengthens the whole optical supply chain, not just the direct recipients
Why investors should care
This is less about a single customer win and more about the AI buildout getting even more expensive and more strategic. If you own FN, the bull case is that demand for advanced optics keeps climbing, and Fabrinet stays on the right side of that trend line.
Big picture: sometimes the best place to stand in a gold rush is not in the mine — it’s selling the shovels, the carts, and the fancy goggles.