We recently compiled a list of the 15 AI Stocks Trending on Financial Media. In this article, we are going to take a look at where Fabrinet (NYSE:FN) stands against the other AI stocks that are trending on financial media.

The AI revolution has disrupted the technology industry, propelling memory chip firms into the spotlight after decades spent in the shadows of semiconductors and software giants. In order to understand the importance of memory chips to AI, investors should reflect on the centrality of data storage to AI technology. Memory chips store data that is used by AI firms for training models and storing parameters. News agency Reuters recently reported that Kioxia, a Japanese memory chip firm, is set to debut on the stock market with an initial valuation of close to $5 billion. In October, the firm had postponed plans for an IPO at double this valuation.

Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.

Private equity firm Bain Capital is one of the most prominent backers of Kioxia. The latter is among the largest makers of NAND flash memory in the world. NAND quality directly affects the processing speed and overall performance of AI models. Bain led a consortium to acquire Kioxia from Toshiba for $18 billion in 2018. The private equity firm has tried twice to get the memory chipmaker listed on the stock exchange, once in 2018 and then again earlier this year.

Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.

For this article, we selected AI stocks by combing through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

An automated assembly line displaying the advanced packaging technology used by the company.

Fabrinet (NYSE:FN)

Number of Hedge Fund Holders: 42

Fabrinet (NYSE:FN) offers optical packaging, along with precision optical, electro-mechanical, and electronic manufacturing services. The company produces fiber-optic cables that power telecommunications, AI data centers, and the global Internet infrastructure. Rosenblatt analyst Mike Genovese recently released an investor note on the company, noting that a competitor firm downgraded Fabrinet to Sell this week due to the concern that Amazon is unbundling Optical and GPU purchases, but Rosenblatt does not agree with the downgrade as it views this unbundling trend as known about for a long-time. The advisory thinks Fabrinet's business with Nvidia should be fine, despite Amazon's moves, because there are now about a dozen massive AI data center spenders that say they will invest as much as necessary to be the firm mover or leader in new generative AI markets.