Buy The Dip On These 10 Semiconductor Stocks Tumbling On China H20 Chip Sale Ban

8. Fabrinet (NYSE:FN)

Number of Hedge Fund Holders: 36

The market has been harsh on Fabrinet for many reasons. One look at the one-year chart and you can see the market has struggled to value the stock amid changing economic conditions for the semiconductor industry. There are concerns that the company relies too heavily on the Jensen Huang-led chipmaker, and any diversification on the chipmaking giant’s part could signal doom for Fabrinet.

B. Riley recently upgraded the stock from Sell to Neutral but was quick to mention the risks associated with the stock:

“We still remain concerned about FN’s 800G sales to Nvidia, which could come under pressure as hyperscalers increasingly buy transceivers directly rather than through NVDA. Complicating the outlook is the tariff uncertainty. While the situation remains fluid, the tariff rate for Thailand is currently at 36%.”

While the concerns are valid, investors see the recent interest from Amazon as a sign of safety. Last month, Fabrinet issued a warrant to Amazon allowing the tech giant to buy up to 381,922 shares in the company. Fabrinet is a critical supplier for Amazon, and this warrant is proof that the company’s tech is good enough to survive even if Jensen Huang’s firm diversifies away from the firm.