Fabrinet is a small company that makes special parts for computers. They help a big company named Nvidia to work faster. Nvidia uses these special parts in their big machines that store and use lots of information. Because of this, people like investing in Fabrinet, and its value has gone up. However, there is a risk because Nvidia might use different parts in the future. If this happens, it could affect Fabrinet's business and make its value go down. So, investors have to watch this situation carefully. Read from source...

"A good piece of analysis but the author seems to have an irrational obsession with Nvidia Corp and it's like the article is written for Nvidia more than providing valuable insights to readers. The article seems to be filled with positive sentiments about Nvidia, which leads to an over-optimistic view of Fabrinet's prospects. For instance, it argues that Fabrinet's "core business" is at risk because Nvidia is transitioning from fiber to copper. However, the article provides no evidence to support this claim, and it ignores the fact that Fabrinet's business is far more diversified than just providing optical communication products. The article also overlooks the potential challenges and risks Fabrinet may face as a key partner to Nvidia. Overall, while the article contains some interesting information, it is heavily skewed and not very analytical."

- Fabrinet is a crucial player in the AI industry, benefiting from its key role in Nvidia's data center operations. The demand for high data rates in AI applications is driving growth in Fabrinet's optical communication products.
- Despite the growth, there are potential risks. Nvidia's recent shift from fiber to copper for its latest GPUs could reduce the demand for Fabrinet's optical communication products, affecting its revenue streams from the data center segment.
- Fabrinet's diversified portfolio and strong foothold in the AI sector provide a buffer against such risks, but any substantial decrease in orders from Nvidia could impact its growth trajectory and financial performance.

Overall, Fabrinet's financial trajectory and stock performance have been impressive. Shares soared over 80% in the past year, outpacing both the broader market and the tech sector. Investors looking for exposure to AI-driven growth should keep a keen eye on this emerging powerhouse.