We recently published a list of 14 AI News Updates Wall Street Is Monitoring. In this article, we are going to take a look at where Fabrinet (NYSE:FN) stands against other AI news updates Wall Street is monitoring.

Merely days after Donald Trump won a tightly-contested election for the top office in the US, Elon Musk, one of his most prominent backers, received further good news as xAI, the AI startup he founded in 2023, raised $5 billion in a funding round. The latest round of funding brought the valuation of the startup to over $50 billion. News publication The Wall Street Journal reported that Valor Equity Partners, Sequoia Capital, and Andreessen Horowitz were part of the raise, while the sovereign wealth fund of Qatar also participated in the funding process. This set of investors had also backed the startup with $6 billion in funding earlier this year.

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

xAI has developed Grok, one of the leading AI chatbots in the world. It rivals the performance of chatbots from tech powerhouses with far greater resources. The firm also controls Colossus, one of the most powerful supercomputers globally. The supercomputer will become fully operational by the end of this year and Musk plans on expanding the hardware at the center of this endeavor to 200,000 GPUs. Last year, the startup also released PromptIDE, an integrated development environment designed for prompt engineering and interpretability research.

READ ALSO: 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. On November 20, B Riley downgraded the stock to Sell from Neutral with a price target of $178, down from $194. The advisory believes the trend of unbundling Nvidia’s GPU platforms will adversely impact Fabrinet’s optics business. The change won’t impact Nvidia’s GPU business but will impact Nvidia’s optics business, contends Riley.