Goldman Sachs’ 35 AI Superstars

30. Fabrinet (NYSE:FN)

Number of Hedge Fund Holders: 42

Fabrinet (NYSE:FN) offers optical packaging, along with precision optical, electro-mechanical, and electronic manufacturing services. The company produces fiber-optic cables that power telecommunications, AI data centers, and the global Internet infrastructure. The case for investing in this company is strong due to several factors. One of them is the company’s strong financial growth and operational efficiency. As per the fiscal year 2024 report, total revenue was $2.88 billion, compared to $2.65 billion for fiscal year 2023, reflecting strong sales and improved profitability. In addition, GAAP net income was $296.2 million, compared to $247.9 million for fiscal year 2023, indicating better cost management. These metrics strengthen the company’s competitive position, making it a lucrative opportunity for investors. Furthermore, the company is most likely to benefit from large-scale AI infrastructure projects, such as Project Stargate which is a $500 billion initiative backed by Oracle, OpenAI, SoftBank, and MGX, aimed at investing in AI data centers over the next four years. Moreover, the company’s strong partnership with NVIDIA plays a key role in driving positive growth in its datacom segment.