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The Markets
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Manufacturing & engineering

Fabrinet stock at all time high with CEO ‘optimistic’ about AI growth potential

Fabrinet stock is at a record high price after the manufacturer revealed impressive fourth quarter and full year fiscal 2023 financial results after the bell on Monday.

Shares of Fabrinet had added $28.6% to US$150.18 shortly before noon on Tuesday.

The company is on track to close at a record high, above its previous all-time high closing price of US$137.86 on January 13, 2023.

Fabrinet provides advanced optical packaging and precision optical, electro-mechanical and electronic manufacturing services to original equipment manufacturers (OEMs) of complex products.

A significant contributor to the company’s 4Q estimate-topping revenue was growth in its datacom revenue from an 800-gigabit AI data center transceiver program for one of its customers.

Fabrinet CEO Seamus Grady told investors on the company’s earnings call that the AI presented a “very significant opportunity” as Fabrinet looks to expand beyond one customer.

“We're very optimistic about our overall market position, including the potential for continued growth in AI-related programs as we look ahead,” he said.

Contact the author at emily.jarvie@proactiveinvestors.com

Follow her on Twitter @emilyjjarvie

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