Core Thesis - Fabrinet (FN) is positioned as a leading outsourced semiconductor assembly and test (OSAT) provider, focusing on photonic modules for AI data centers, indicating strong growth potential in the AI hardware supply chain [2][3] Financial Performance - As of December 16th, FN's share price was $451.16, with a trailing P/E of 48.46 [1] - The company is projected to achieve a revenue growth of 27.9% and EBITDA growth of 30.9% in FY26, driven by the increasing adoption of photonic transceivers [2] - FN's net income margin stands at 10.7%, reflecting the profitability of its specialized operations [3] Market Valuation - FN's stock trades at a forward EV/Sales of 3.8x, EV/EBITDA of 30.5x, and a forward P/E of 36.7x, suggesting that the market valuation may not fully reflect its strategic position in the AI infrastructure ecosystem [3] Competitive Advantage - The company's focus on high-reliability modules provides a competitive moat, as few competitors possess the necessary technical expertise or scale to serve hyperscale AI clients [3] Growth Catalysts - Potential catalysts for FN's upside include growth in high-margin photonic modules, deeper penetration into AI data center supply chains, and operational leverage that could enhance profitability [4] - The company is well-positioned to benefit from revenue and margin expansion as AI adoption accelerates and demand for photonic interconnects increases [3][4] Historical Context - FN's stock has appreciated approximately 126.71% since a previous bullish thesis in April 2025, which highlighted a strategic issuance of warrants to Amazon, indicating growing market confidence in AI and data center demand [5]