New York, Jan 13, 2026, 14:12 EST — Regular session
Fabrinet shares climbed 7.8% to $499.25 during afternoon trading on Tuesday, reaching an intraday peak of $504.90. The stock had closed at $462.94 the day before and has fluctuated between $460.00 and $504.90 earlier in the session.
The sharp move thrust the optical and electronics contract manufacturer into focus as investors ignored weakness in some major sectors and zeroed in on tech-linked momentum. A steady inflation report kept rate cut talks alive, which usually boosts higher-multiple hardware stocks quickly.
U.S. consumer prices increased by 0.3% in December, bringing the annual gain to 2.7%, the Labor Department reported. Core CPI, which excludes food and energy to better gauge underlying inflation, rose 0.2% for the month and 2.6% over the past year. The next CPI report will be released on Feb. 11 at 8:30 a.m. ET.
Wall Street’s key indexes edged lower early on, dragged down by financials following JPMorgan’s caution about a potential cap on credit-card rates. At the same time, certain investors are pushing rotation trades. “The lifeblood of a bull market is rotation,” said Ryan Detrick, chief market strategist at Carson Group.
Other electronics manufacturing services stocks also moved higher. Celestica jumped nearly 6%, Sanmina climbed about 5%, Flex ticked up roughly 4%, and Jabil advanced close to 3.6%.
Fabrinet manufactures optical communication components, modules, subsystems, and other complex products for OEMs. In November, CEO Seamus Grady attributed the company’s record quarter to “another strong telecom performance” alongside “an early contribution from new High-Performance Computing revenue.” The firm forecasted second-quarter revenue between $1.05 billion and $1.10 billion. It also projected non-GAAP earnings per share of $3.15 to $3.30, a figure that excludes items like share-based compensation.
The recent surge brought the stock to roughly 5% below its 52-week peak, following a volatile year that attracted more short-term investors. According to Investing.com, the stock’s range over the past year has been $148.55 to $531.22. (Investing)
But the situation swings both ways. Should rate forecasts change once more, or if demand softens in telecom and data-center supply chains, contract manufacturers riding high could lose ground fast—especially with shares already close to their recent peak.
Fabrinet’s fiscal second-quarter earnings report is set for Feb. 2, per Nasdaq.com. Investors will be keen to see if the company hits its previous forecasts and how it describes demand trends across telecom, datacom, and emerging high-performance computing sectors. (Nasdaq)
