Why Finisar Shares Are Soaring Today
Shares of Finisar (NASDAQ: FNSR) have soared today, up by 30% as of 12 p.m. EST, after the company scored a $390 million investment from Apple (NASDAQ: AAPL). The investment was awarded from the $1 billion Advanced Manufacturing Fund that Apple set up in May of this year, which is dedicated to supporting innovation and job creation domestically. Apple previously awarded $200 million to another supplier, Corning, out of the fund.
The money will help Finisar boost its research and development spending and ramp production of vertical-cavity surface-emitting lasers (VCSELs), the sensors that are a critical piece of the new 3D-sensing TrueDepth camera system in iPhone X. Considering the iPhone X's expected volumes, Apple is now a huge purchaser of VCSEL arrays.
An assembly tool on the Finisar manufacturing floor. Image source: Apple.
Source: Fool.com
