Fabrinet’s weaker-than-expected Q1 outlook triggers a selloff in optical and connectivity stocks, including Marvell and Amphenol.
Fabrinet shares plunged 20% after the company reported record Q4 revenue of $1.316 billion, up 45% year over year, but issued cautious Q1 guidance. Non-GAAP EPS hit $4.10, surpassing estimates, while full-year revenue rose 36% to $4.64 billion. CEO Seamus Grady called the quarter “exceptional,” but investors focused on decelerating growth signals.
The selloff spread to peers, with Marvell Technology down 8%, Amphenol off 7%, Coherent falling 12%, and Lumentum dropping 10%. Despite strong datacenter revenue growth—59% for Coherent and 109% for Lumentum—AI hardware stocks faced broader pressure. Anthropic’s $65 billion annual recurring revenue missing $80 billion expectations and a 19-year high in 30-year Treasury yields amplified the downturn.
Fabrinet’s stock traded near $476 at midday, dragging the optical and connectivity sector lower. The pullback reflects investor concerns over AI infrastructure demand after a period of rapid gains.