FN Rides on Surging Data Center Demand: Can It Outpace AAOI & LITE?
Source: Zacks ·
Fabrinet's surging data-center revenues, DCI growth and capacity expansion strengthen its position against optical rivals AAOI and LITE.
From the source
Fabrinet FN is benefiting from accelerating demand across artificial intelligence (AI) and cloud data-center infrastructure. In the fourth quarter of fiscal 2026, data center revenues reached $669 million, surging 68% year over year and 13% sequentially, and accounted for 51% of total revenues. This momentum strengthens FN's position in data-center optical infrastructure against Applied Optoelectronics AAOI and Lumentum Holdings LITE, which are also benefiting from rising demand for high-speed optical connectivity. Fabrinet's data center portfolio includes networking, data center interconnect (DCI), high-performance computing (HPC) and other AI infrastructure applications. DCI has emerged as a major growth engine for FN. It was the largest contributor to data center growth in the fourth quarter of fiscal 2026, with its annualized revenue run rate exceeding $1 billion. HPC contributed meaningfully as multiple programs with a major hyperscaler continued to ramp. Fabrinet is ramping the…