Fabrinet Drops After Earnings Dragging Down Peers Like Marvell and Amphenol
Fabrinet experienced a significant drop in its stock price following a disappointing earnings report, which led to a decline in shares of other AI hardware providers as well. The company posted a fiscal Q4 beat but fell short of market expectations for AI infrastructure names. Marvell Technology and Amphenol also saw their stocks fall by 8% and 7%, respectively, while Coherent and Lumentum dropped 12% and 10%, respectively.
Despite meeting revenue expectations, Fabrinet's full-year revenue growth of 36% and record Q4 revenue lagged behind pre-earnings expectations. The analyst who correctly predicted NVIDIA's potential in 2010 suggested Marvell Technology was not among the top AI stocks to invest in, adding to the downward pressure on the company's stock.
Additional factors, such as Anthropic's lower-than-expected ARR and the 30-year Treasury's 19-year high, contributed to the market-wide sell-off of AI hardware stocks.
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