Rosenblatt does not agree with competitor downgrade of Fabrinet

Rosenblatt analyst Mike Genovese notes that a competitor firm downgraded Fabrinet (FN) to Sell this week due to its concern that Amazon (AMZN) is unbundling Optical and GPU purchases, but the firm does not agree with the downgrade as it views this unbundling trend as “known about for a long-time.” The firm thinks Fabrinet’s business with Nvidia (NVDA) “should be fine,” despite Amazon’s moves, because there are now about a dozen massive AI data center spenders that say they will invest as much as necessary to be the firm mover or leader in new generative AI markets, adds the analyst, who keeps a Buy rating on Fabrinet shares, which were cut to Sell at B. Riley on November 20.