The Cool Aisle by George Notter... Earnings Nuggets You Missed

Research evidence excerpt

The Cool Aisle by George Notter... Earnings Nuggets You Missed

May 17, 2026

Investment Conclusion

Basket Performance & Comp metrics:

Source: Wolfe Research, FactSet

Legend: Broadband Access: ADTN, AAOI, CALX, HLIT, VISN

AI Networking: AAOI, ANET, CLS CIEN, COHR, FN, LITE Enterprise: CSCO, DELL, FFIV, HPE, RDWR

Optical: AAOI, CIEN, COHR, GLW, FN, LITE Public Safety: AXON, MSI

Telecom: ADTN, DOX, CALX, CIEN, COHR, GLW, FN, LITE, VISN Defensive: DOX, GLW, MSI

Topic of the Week: Earnings Nuggets You Missed…

Fabrinet (FN) – No Coincidence with the Nava Factory Purchase; Raytech Deal = CPO... On their latest EPS call,

Fabrinet indicated that they have purchased a 200,000 square foot facility along with enough land to build another

200,000 square foot factory. It is located at the Nava Nakorn industrial estate in Thailand. Interestingly, Lumentum's

“Nava” factory is only ~1 mile away from the new Fabrinet location. Of course, Lumentum – at OFC – said that without

investing in their CM partners, they wouldn't be able to hit the massive numbers they've outlined. We believe Fabrinet's

new facility is a part of this initiative. Our guess is that the location will be dedicated to Lumentum. This portends a

significant amount of potential new business for Fabrinet – we assume as much as $500M/year.

We also picked up more details on the company’s Raytech investment. Of course, Fabrinet invested $32M for ~14%

of Raytech. We understand the partnership with provides advanced CPO manufacturing capabilities that Fabrinet

doesn't have today. These include plating, wet processes, and copper pillar bumping. This is a big deal in our view.

Our upside scenario for Fabrinet has the company getting inside CPO-based Ethernet Data Center switches – not just