Fabrinet slides 20% after outlook, pulling AI hardware peers lower

Fabrinet shares sank about 20% after its quarterly outlook disappointed investors, dragging Marvell, Amphenol and other AI hardware stocks lower.

Fabrinet shares fell about 20% Tuesday after its first-quarter outlook disappointed investors despite record fiscal fourth-quarter results.

The optical manufacturer reported quarterly revenue of $1.316 billion, up 45% from a year earlier, and non-GAAP earnings of $4.10 per share. Full-year revenue rose 36% to $4.64 billion.

Fabrinet projected first-quarter revenue of $1.375 billion to $1.425 billion, signaling a slower sequential increase after the latest quarter’s rapid expansion.

The company also disclosed a $56.7 million loss on non-marketable equity securities. Capital spending contributed to negative free cash flow of $36.9 million for the quarter.

The sell-off spread to other AI infrastructure suppliers, with Marvell, Amphenol, Coherent and Lumentum all trading sharply lower Tuesday.

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