Geopolitics is back in the spotlight, and energy markets are feeling it. With the U.S.-Iran peace deal under pressure, renewed tensions around the Strait of Hormuz are raising questions about supply security and price risk that can ripple through your portfolio. Instead of reacting to headlines alone, it can help to focus on large, financially solid oil and gas producers that sit at the center of this story. This article highlights 3 stocks from our Energy Sector screener that appear positively exposed to the latest developments and explains why each might deserve a closer look right now.

Wall Street's queuing for one rocket. While SpaceX counts down to its IPO, other companies tied to the new space race are already in orbit. → 20 Compelling Space Companies watchlist · Global Space Race Investing Ideas screener · Scan the sector by valuation on Rocket Lab's valuation page.

Fabrinet (FN)

Overview: Fabrinet is a manufacturing partner for high speed optical and electronic components, building items like fiber optic modules, datacenter transceivers, lasers, and sensors that its customers integrate into telecom networks, data centers, cars, and medical devices.

Operations: Fabrinet generates about US$4.2b in revenue from optical networking equipment, with sales spread across the U.S., Israel, India, the U.K. and a wide range of other international markets.

Market Cap: US$21.9b

Fabrinet stands out as an energy screener pick because it sits at the intersection of high speed connectivity, AI infrastructure, and industrial demand, yet still behaves like a contract manufacturer rather than a headline grabbing tech stock. Analysts expect strong revenue and earnings growth, helped by rising datacenter and telecom demand, while recent Q3 FY2026 results and Q4 guidance point to healthy momentum despite some supply constraints in datacom products. At the same time, a rich valuation, high customer concentration around NVIDIA and Cisco, and increased capital spending for capacity expansion mean execution has to stay tight. If you want to see how that trade off between growth potential and risk really stacks up, you are only getting part of the picture here.

Fabrinet’s AI and datacenter demand story looks powerful, but rich pricing, big customers like NVIDIA and Cisco, and heavy capex raise real questions about balance and timing. As a result, the 3 key rewards and 3 important warning signs (1 is major!) might be the missing twist.

Applied Optoelectronics (AAOI)

Overview: Applied Optoelectronics designs and manufactures fiber optic hardware and software that move data at high speed, supplying optical modules, lasers, transceivers, and network equipment to internet data centers, cable operators, telecom providers, and fiber to the home networks in the U.S., Taiwan, and China.

Operations: The company generates about US$507m in revenue from optical networking equipment, with around US$303.6m from China, US$184.3m from Taiwan, and US$19.1m from the United States.

Market Cap: US$13.6b

Investors watching energy and AI infrastructure may find AAOI interesting because it sits where hyperscale data traffic, telecom upgrades, and network automation meet. It supplies high speed 800G and 1.6T optics plus QuantumLink software that customers like Spectrum and Mediacom are using to modernize large cable and broadband networks. The company is still reporting losses and has relied on sizeable equity issuance, so dilution risk and share price volatility are considerations, particularly with a high P/S ratio and heavy dependence on a few large customers. At the same time, analyst revenue growth forecasts and expanding U.S. manufacturing for AI focused transceivers position AAOI as a higher risk way to gain indirect exposure to digital infrastructure that supports applications such as data intensive AI clusters and smarter energy networks.

AAOI’s expanding role in high speed optics and QuantumLink software is weighed against losses, dilution risk, and a high P/S ratio. The real puzzle is what the 1 key reward and 3 important warning signs (2 are major!) reveals about how that tension could resolve.

Circle Internet Group (CRCL)

Overview: Circle Internet Group runs the USDC stablecoin platform, providing blockchain based dollars, euro tokens, and related payment and custody services that let businesses move money globally at internet speed while still tying each token to traditional cash and short term U.S. Treasuries.

Operations: Circle generates about US$2.9b in revenue from data processing services, with all of it reported from the United States.

Market Cap: US$19.3b

Circle gives you exposure to the plumbing behind digital dollars, with USDC at the center of cross border payments, enterprise treasury tools, and new products like cirBTC and the Circle Payments Network that are attracting institutional partners such as Nium and Kyriba. The business benefits from interest earned on reserves. However, the stock trades on a rich P/S multiple and has a history of share price volatility, insider selling, and currently modest profitability metrics. For investors who like the idea of a regulated, yield earning stablecoin platform sitting between traditional finance and crypto, the key consideration is whether that strategic positioning justifies the current valuation in a diversified portfolio.

Circle’s USDC engine is tightly linked to Treasuries and payments, yet the real story sits in how the business, valuation and volatility fit together. The 1 key reward and 2 important warning signs starts to unpack this before a crucial twist

The stocks in this article are just a starting point, and the full Energy Sector (Oil & Gas Producers) screener surfaces 86 more large oil and gas producers with financial profiles and stories that can be just as compelling. Use Simply Wall St to identify, filter and analyze the specific catalysts and narratives that matter to you so you can focus on the ideas with the highest conviction for your watchlist.

Take Control of Your Investment Journey

If Circle Internet Group or any of these companies sound like a great opportunity, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value the ideal entry point. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.

Seeking Fresh Alternatives For Your Curiosity?

Some of the most interesting breakout stories are still under the radar for now, and momentum can be caught or missed fast, so do not delay, get in early.

• Spot resilient compounders with strong balance sheets before the crowd notices by scanning the curated list of solid balance sheet and fundamentals (48 results) while the best entry points are still on the table.
• Follow the next wave of automation by tracking companies powering robots and smart factories through our focused list of 33 robotics and automation stocks before momentum really starts to build.
• Explore the AI buildout by focusing on infrastructure stocks using the hand picked 48 AI infrastructure stocks while their stories are still under most radars.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.