10 Stocks That Could Skyrocket After Jensen Huang’s Earnings Call

4. Fabrinet (NYSE:FN)

Fabrinet is an electro-mechanical, optical packaging & precision optical, and electronic manufacturing services provider. It offers different electro-mechanical and advanced optical capabilities for manufacturing processes which include supply chain management, advanced packaging, process design and engineering, and others. The company sells its products and services to modules and subsystems, medical devices, industrial lasers, and other industries.

Fabrinet announced its Q2 earnings result earlier in February which surpassed analyst estimates. The company’s Optical Communications revenue went up by 14% while Non-Optical Communications revenue increased by 29% YoY. Though the gross margins were slightly down from the 1st quarter, it was mainly due to currency instability. Operating margins also improved by 10.6%.

The stock was down 8% in the last month and has not recovered even after strong results. It might be due to the downturn in its datacom segment, which was the key player in the previous gain in the stock. According to the management, the datacom revenue will be down in the next quarter as well. This downturn might reverse gradually but a strong earnings report from the leading GPU maker this week could set the stock on a recovery path.