Fabrinet (FN): The Hidden AI Play With Zero Debt

Fabrinet (FN) is the second free pick, rated Bullish by the Power Gauge. Fabrinet builds the physical infrastructure that AI data travels on: transceivers, photonics systems, and fiber optics. As Chaikin puts it, while everyone talks about who’s building the advanced chips that power AI, no one pays attention to who’s building the high-speed superhighway that all the AI data travels on.

Fabrinet has nearly $1 billion in cash and zero long-term debt. Its partners include Nvidia, Cisco, and Amazon. The key insight: even when frontier AI changes the computing architecture, the data infrastructure doesn’t change, so Fabrinet’s hardware becomes more critical, not less. The faster AI gets, the more critical Fabrinet’s hardware becomes.

The contrast with Oracle is stark. Oracle is drowning in debt building data centers for a startup that can’t pay its bills. Fabrinet is swimming in money building the frontier AI superhighway for some of the biggest companies on earth. The Power Gauge rates Oracle Bearish and Fabrinet Bullish, reflecting the institutional money flow into Fabrinet and out of Oracle.

The contrast with Oracle, which Chaikin rates Bearish, is stark. Oracle (ORCL) is the second stock on Chaikin’s hitlist, rated Bearish. The story is a cautionary tale about what happens when a company bets the farm on a customer that may not be able to pay. Oracle had been building a data center in Texas for Elon Musk. When Musk walked away, a LinkedIn message from an OpenAI executive started a chain of events that led to a $300 billion megadeal between OpenAI and Oracle.

Oracle went from a dependable software and cloud services company to a freewheeling architect of the data-center boom. OpenAI promised to pay Oracle $300 billion from its future revenues. The problem: future revenues are all OpenAI can guarantee, because right now, they don’t make any money. It recently leaked that OpenAI’s own CFO told insiders that OpenAI will not be able to pay back its data-center contracts if revenue doesn’t grow fast enough. It’s not growing fast enough.

Oracle’s stock price got cut by more than half. The company executed one of the largest modern layoffs of the AI era, sending 30,000 employees packing. For context, when Lehman Brothers collapsed in 2008 and sent the global financial system into crisis, they laid off 25,000 people.

The Power Gauge’s bullish rating on Fabrinet is driven by strong institutional money flow, solid financials, and earnings growth. The Chaikin Money Flow indicator is Marc Chaikin’s most famous creation. It tracks institutional money flowing into and out of stocks, providing a signal of whether smart money is accumulating or distributing shares. The indicator appears on every Bloomberg and Reuters terminal in the world and is used by professional traders globally.

Chaikin developed the indicator in the 1980s, originally calculating all the math by hand on a calculator for every stock he was watching. It became a core part of the Power Gauge system, where it serves as the most heavily weighted factor in the Technicals category.

The indicator works because someone always knows something early, and that knowledge is sometimes only reflected in the movement of large sums of money in and out of stocks. When institutions start pouring hundreds of millions of dollars into a stock, it can shoot up overnight. When they pull that money out, the stock will almost always plummet.

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The total stated value is $2,595 plus the mystery gift, but the actual price is described as less than the price of a nice dinner and is revealed on the order page. The guarantee is 30 days, 100% money-back. If you cancel during the trial period, you keep all four bonus reports. The service has grown to over 550,000 subscribers.

Where to Learn More

For the complete analysis, read our CPGR Frontier AI review covering Marc Chaikin’s full thesis on frontier AI and the Power Gauge system.

Read our CPGR Frontier AI review for the complete analysis.

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This is not financial advice. Always do your own research before investing.