Fabrinet's 15min chart shows RSI Oversold, KDJ Golden Cross

Fabrinet's 15-minute chart exhibits oversold RSI and a KDJ golden cross as of September 24, 2025, at 09:45. This indicates that the stock price has declined precipitously, potentially below fundamental support levels. Furthermore, the momentum of the stock price is shifting towards an upward trajectory, suggesting potential for further gains.

Fabrinet's (FN) stock has experienced a significant decline, with its 15-minute chart displaying an oversold RSI and a KDJ golden cross as of September 24, 2025, at 09:45. This technical analysis suggests that the stock price has fallen below fundamental support levels, potentially creating a buying opportunity. The momentum indicators point to a shift in the stock price's trajectory, indicating a potential for further gains.

The stock's recent performance has been remarkable, with a 74.3% year-to-date (YTD) appreciation, significantly outperforming its peers in the Zacks Electronics – Miscellaneous Components industry and the Zacks Computer and Technology sector Fabrinet Appreciates 74% YTD: Should You Buy, Sell, or Hold the Stock?^[1]. This strong performance has been driven by robust demand for telecom and Data Center Interconnect (DCI) products, as well as the ramp-up of 1.6-terabit transceivers.

However, the first-quarter fiscal 2026 guidance from Fabrinet indicates near-term constraints due to shortages of 200-gigabit per lane externally modulated lasers, which are critical for 800G and 1.6T transceiver production Fabrinet Appreciates 74% YTD: Should You Buy, Sell, or Hold the Stock?^[1]. These supply constraints are expected to pressure datacom revenues sequentially despite healthy end-market demand.

Despite these near-term challenges, Fabrinet's diversified portfolio and strength in next-generation optics support its long-term prospects. The company's strategic portfolio expansion through partnerships and capacity expansions signals confidence in capturing emerging demand across optical communications, data center connectivity, and high-performance computing markets.

The stock's current valuation, reflected by a Value Score of D and a 31.74X forward 12-month earnings multiple, indicates that it may be overvalued compared to its peers and the industry Fabrinet Appreciates 74% YTD: Should You Buy, Sell, or Hold the Stock?^[1]. While Fabrinet's stock has rallied significantly YTD, much of the upside from optical ramps and data center interconnect demand may already be captured in the valuation.

Given the technical indicators and the company's strong fundamentals, investors may consider Fabrinet as a potential long-term investment, but they should wait for a more favorable entry point due to the stock's current valuation and near-term constraints.