Fabrinet(FN) The Motley Fool·2025-03-13 20:26Core Insights - Fabrinet's stock increased by 10.8% amid broader market declines, indicating strong investor interest following a strategic partnership announcement with Amazon [1] - Amazon will purchase 381,922 ordinary shares of Fabrinet at $208.48 per share, with the warrant expiring on March 12, 2032 [2] - The partnership is expected to enhance Fabrinet's sales growth as Amazon expands its AI operations, with a significant portion of shares vesting based on future payments [4] Company Position - Fabrinet is a key supplier of precision optical equipment essential for modern data centers, which are critical for internet infrastructure and AI model support [3] - The company maintains a solid financial position with minimal debt, positioning it well to capitalize on increased AI capital expenditures from major tech firms like Amazon [4] - Fabrinet's price-to-earnings ratio (P/E) stands at 22.6, suggesting it is reasonably priced in the current market [4]