Fabrinet's 15min Chart Shows MACD Death Cross, KDJ Death Cross, Bearish Marubozu

Fabrinet's 15-minute chart has recently triggered a significant technical indicator, namely a MACD Death Cross, a KDJ Death Cross, and a Bearish Marubozu at 13:30 on September 19th, 2025. This technical indicator suggests that the stock price has the potential to continue its downward trajectory, with a shifting momentum towards the downside. The control of the market has been taken over by sellers, and it is likely that bearish momentum will continue to prevail.

Fabrinet's (FN) stock recently triggered a significant technical indicator, namely a MACD Death Cross, a KDJ Death Cross, and a Bearish Marubozu at 13:30 on September 19th, 2025. This combination of technical indicators suggests that the stock price has the potential to continue its downward trajectory, with a shifting momentum towards the downside. The control of the market has been taken over by sellers, indicating that bearish momentum is likely to prevail.

Fabrinet has been ramping up its exposure to Data Center Interconnect (DCI) segment, a market poised for growth as hyperscalers scale infrastructure to meet accelerating AI and cloud workloads. In the fourth quarter of fiscal 2025, DCI revenues reached $107 million, accounting for 26% of telecom revenues and 12% of total revenues. Fabrinet reported DCI as a standalone sub-segment within optical communications, signaling long-term confidence in its growth trajectory. The Zacks Consensus Estimate for total revenues in the first quarter of fiscal 2026 is pegged at $929.74 million, suggesting 11.7% year-over-year growth. The consensus mark for Optical communications revenue is pegged at $699.92 million, up 17.3% year over year. DCI’s momentum, fueled by AI-driven infrastructure scaling, is expected to lift both shipment volumes and complexity-driven pricing over time.

Despite the positive trends in DCI, Fabrinet faces stiff competition from peers like Coherent COHR and Lumentum LITE, both of which are increasing their focus on the data center interconnect (DCI) opportunity. Coherent is ramping investment in high-speed transceivers and integrated photonic platforms, while Lumentum is enhancing its DCI portfolio with compact, thermally efficient modules. As hyperscalers accelerate AI data center upgrades, these rivals are emerging as key competitors in the evolving DCI supply chain.

Fabrinet's shares have jumped 62.9% year-to-date (YTD), outperforming the Zacks Electronics-Miscellaneous Components industry and the Zacks Computer and Technology sector’s increase of 35.2% and 20.3%, respectively. From a valuation standpoint, Fabrinet stock is currently trading at a forward 12-month Price/Sales ratio of 3.01X compared with the industry’s 2.08X. The Zacks Consensus Estimate for Fabrinet’s first quarter fiscal 2026 earnings is pegged at $2.83 per share, indicating 18.41% year-over-year growth.

However, the recent technical indicators suggest a potential shift in the stock's momentum. The MACD Death Cross, KDJ Death Cross, and Bearish Marubozu indicate a strong bearish trend, which could lead to further downward pressure on the stock price. Investors should closely monitor these indicators and consider the potential implications for Fabrinet's stock performance.