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Fabrinet (FN) shares have dropped 12.5% year-to-date, underperforming its sector and peers, due to concerns about customer concentration, normalization of NVIDIA-related revenues, margin pressure, and high capital spending. Despite these challenges, the company benefits from strong AI infrastructure demand, particularly in data centers, and is aggressively expanding its manufacturing capacity. Although Fabrinet stock is currently considered overvalued based on its P/CF multiple, its long-term growth prospects in high-speed optical manufacturing and AI infrastructure remain compelling, leading to a Zacks Rank #2 (Buy) recommendation.