ScanSource (NASDAQ: SCSC - Get Free Report) and Fabrinet (NYSE: FN - Get Free Report) are both technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, dividends, analyst recommendations, institutional ownership, valuation and profitability. Volatility and Risk ScanSource has a beta of 1.25, meaning

FN's 12.5% YTD slide reflects customer concentration, margin pressure and high spending, even as AI data-center demand fuels growth.

Applied Optoelectronics faces supply constraints despite surging 800G demand, while FN's broad AI data-center growth and capacity expansion strengthen its position.

Fabrinet's surging data-center revenues, DCI growth and capacity expansion strengthen its position against optical rivals AAOI and LITE.

Fabrinet is positioned to benefit from surging AI and data center demand, driving robust optical manufacturing growth. FN's aggressive capacity expansion, supported by a strong balance sheet and no debt, underpins its ability to capture future demand. Operating leverage and accelerating EPS growth have compressed FN's valuation, making shares attractive after a sharp correction.

Fabrinet delivered 45% Q4 FY2026 revenue growth, driven by surging AI data center demand, with Data Center revenue up 68%. At $380, FN trades at 21x FY2027 EPS, but valuation improves to 17x FY2028 and 13x FY2029 on accelerating earnings growth. DCI and customer diversification are key growth drivers, while capacity expansions could push production to $9.8 billion by early 2027.

Fabrinet holds a critical, high-barrier position in the AI infrastructure supply chain. Rapid revenue growth is currently driven by a small number of major hyperscaler customers.

Fabrinet (FN) reported earnings 30 days ago. What's next for the stock?

Major indexes are moving mixed as investors await the September Fed decision today

Two weeks in, September is already doing what September usually does. The S&P 500 drifted lower toward its 21-day moving average, the AI trade lost its footing, and several companies that had just posted double-digit earnings beats got sold anyway.