Fabrinet crashed 20% on decelerating Q1 guidance after running up 25% pre-earnings, dragging Marvell down 8% and Amphenol 7%. Coherent fell 12% and Lumentum dropped 10% despite posting datacenter revenue growth of 59% and 109% last quarter. Anthropic's $65 billion ARR missing $80 billion expectations and the 30-year Treasury hitting a 19-year high amplified selling across AI hardware.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Marvell Technology didn't make the cut. Grab the names FREE today. Shares of Fabrinet (NYSE:FN) are down roughly 20% at midday Tuesday, trading near $476 after the optical manufacturer posted a fiscal Q4 beat but disappointed a market already primed to sell AI infrastructure names.
The move is dragging the whole optical and connectivity complex lower. Marvell Technology (NASDAQ:MRVL) is off nearly 8%, Amphenol (NYSE:APH) is down about 7%, Coherent (NYSE:COHR) is off about 12%, Lumentum (NASDAQ:LITE) has dropped roughly 10%, and Corning is down nearly 8%. After Monday's close, Fabrinet reported record Q4 revenue of $1.316 billion, up 45% year over year and above guidance.
Non-GAAP EPS came in at $4.10 versus $2.65, an all-time high. Full-year revenue reached $4.64 billion, up 36%. CEO Seamus Grady called the quarter "exceptional, capping off a remarkable year of accelerating growth and strong momentum." View the 8-K filing here.
The problem is positioning. FN ran up roughly 14% in the week and 25% in the month heading into the earnings report, and Q1 guidance of $1.375 billion to $1.425 billion implies a far more modest sequential step-up than the 45% YoY quarter just delivered. Add a disclosed $56.7 million loss on non-marketable equity securities and heavy capex that pushed Q4 free cash flow to negative $36.9 million, and a beat-and-raise turned into a "good but decelerating" setup.
This is Fabrinet's largest earnings-day drop in the last six quarters, roughly 2.2x the typical post-earnings selloff. Over the weekend, Anthropic told investors ARR hit $65 billion at the end of July, huge growth but below the $80 billion-plus figures Gavin Baker had cited on The All In Podcast. then reported Anthropic's own 2028 revenue estimate of $190 billion to $200 billion, again below what some investors were modeling. The Wall Street Journal capped it, reporting that nine top tech companies carry roughly $3 trillion of off-balance-sheet commitments mostly related to AI, growing faster than traditional capex.
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