Fabrinet assumed with a Buy at Needham

Needham assumed coverage of Fabrinet (FN) with a Buy rating and $280 price target The company reported a “surprisingly broad-based” strong fiscal Q1, with low-speed Datacom carrying growth again as high-speed remained stalled ahead of the expected transition to 1.6T transceivers for Nvidia’s Blackwell, the analyst tells investors in a research note. The firm says the addition of artificial intelligence-related demand selling into the heart of the AI clusters adds a whole new dimension to Fabrinet’s opportunity.