Top AI Stocks to Invest in for 2026 (LITE, COHR, FN)
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 15 2025
0mins
Source: NASDAQ.COM
Photonics and AI Infrastructure: The expansion of artificial intelligence (AI) infrastructure is increasingly reliant on photonics technologies, which enhance data movement capabilities beyond the limitations of traditional copper interconnects, enabling faster and more efficient AI model training and inference.
Market Growth Projections: The optical interconnect market is expected to grow significantly, from approximately $16 billion in 2024 to $34–41 billion by 2030, with silicon photonics and data center interconnect spending also projected to rise substantially during the same period.
Key Companies in Photonics: Companies like Lumentum, Coherent Corp, and Fabrinet are positioned to benefit from the growing demand for photonics in AI infrastructure, each showing strong sales and earnings momentum, along with favorable Zacks Ranks.
Investment Opportunities: As the photonics theme gains traction, these companies are seen as attractive investment opportunities, with analysts predicting continued growth and potential for significant returns as the industry shifts towards optical-first architectures in AI data centers.
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Analyst Views on FN
Wall Street analysts forecast FN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FN is 544.83 USD with a low forecast of 499.00 USD and a high forecast of 600.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
5 Buy
1 Hold
0 Sell
Strong Buy
Current: 496.260
Low
499.00
Averages
544.83
High
600.00
Current: 496.260
Low
499.00
Averages
544.83
High
600.00
About FN
Fabrinet is a provider of advanced optical packaging and precision optical, electro-mechanical and electronic manufacturing services to original equipment manufacturers of complex products, such as optical communication components, modules and sub-systems, automotive components, industrial lasers, medical devices and sensors. The Company offers a range of advanced optical and electro-mechanical capabilities across the entire manufacturing process, including process design and engineering, supply chain management, manufacturing, complex printed circuit board assembly, advanced packaging, integration, final assembly and testing. It focuses primarily on low-volume production of a wide variety of high complexity products. It also designs and fabricates applications-specific crystals, lenses, prisms, mirrors, laser components, and substrates (customized optics) and other custom and standard borosilicate, clear fused quartz, and synthetic fused silica glass products (customized glass).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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