Fabrinet's stock soared 5.10% during intraday trading on Monday, marking a significant recovery move.

The surge represents a rebound from recent lows following a sharp selloff after the company's latest earnings report. Fabrinet reported record-high revenue and adjusted earnings per share for the quarter, but the actual results and forward guidance failed to meet elevated market expectations, leading to a plunge of over 12% in post-market trading on the report date and continued pressure in subsequent sessions.

The current price action suggests the market is entering a digestion phase and repricing the earnings outcome, with buyers stepping in near support levels established during the correction. The stock's movement also aligns with broader strength observed in the optical communication sector during the morning session.