{
  "id": 5244622,
  "title": "Fabrinet (FN): A Hidden AI Infrastructure Stock to Watch",
  "url": "https://urgent.news/2026/09/01/fabrinet-fn-a-hidden-ai-infrastructure-stock-to-watch",
  "topic": "ai",
  "section": "AI",
  "published": "2026-09-01T17:12:18.000Z",
  "source": {
    "name": "Yahoo Finance",
    "slug": "yahoo-finance",
    "url": "https://finance.yahoo.com/technology/ai/articles/fabrinet-fn-hidden-ai-infrastructure-171218001.html"
  },
  "original_language": "en",
  "account": "In the second quarter of 2026, the FPA Queens Road Small Cap Value Fund outperformed both the Russell 2000 Value Index and the S&P 600 Index, returning 27.02% compared to their 22.99% and 23.90% gains respectively. The technology sector within small caps saw a surge, with the fund's technology holdings growing by 72.39%, contributing 14.87 percentage points to the fund's return. Excluding IT and cash, the fund contributed 12.73% to its return, compared to 15.89% for the Russell 2000 Value Index. The portfolio had been trimming appreciated technology holdings, maintaining a bottom-up approach and avoiding beaten-down SaaS stocks due to the uncertain outcomes of AI-related trends. Fabrinet (NYSE:FN), a contract manufacturer specializing in optical networking equipment and modules, was highlighted by the fund in its Q2 2026 investor letter. Fabrinet has experienced impressive revenue growth and increased operating margins, with its products finding increasing demand in data centers, particularly those used for AI model training. The fund expressed caution about the company's stock price, noting that it may have gotten ahead of itself due to rising expectations for data center spending. Despite this, the fund believes that high bandwidth networking will continue to be in demand, and Fabrinet dominates its core telecom and data center markets, diversifying into other niches that reward precise assembly at small scale.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}