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Strategic investment enhances manufacturing scale, operational flexibility, and customer support as semiconductor test requirements continue to advance  | Source: FormFactor, Inc.

LIVERMORE, Calif., Oct. 22, 2026 (GLOBE NEWSWIRE) -- FormFactor, Inc. (Nasdaq: FORM), a leading provider of semiconductor test and measurement technologies, today announced the opening of its Farmers Branch manufacturing facility, marking an important milestone in the company's strategy to expand manufacturing capacity, strengthen operational flexibility, and support growing demand for advanced semiconductor test technologies.

“The opening of our Farmers Branch facility marks an important milestone for FormFactor, expanding our capabilities and capacity to fuel our future growth,” said Missy Figueroa, Senior Vice President, Global Operations at FormFactor. “This investment expands our ability to serve customers worldwide with greater scale, flexibility, and speed, while strengthening our ability to manufacture enabling semiconductor test and measurement technology in the United States.”

As semiconductor devices become increasingly complex, test requirements to ensure performance, yield, and reliability continue to intensify. The rapid adoption of advanced packaging to enable high-performance compute silicon, including GPUs, custom ASICs, and high-bandwidth memory (HBM), is driving extraordinary demand for advanced semiconductor test solutions. The Farmers Branch investment enhances FormFactor's ability to support these trends by expanding production capacity for advanced probe card technologies and helping customers address rising test complexity as they develop next-generation semiconductor devices.

“As semiconductor innovation accelerates, advanced test technologies play an essential role in enabling device performance, yield, and production readiness,” said Mike Slessor, Chief Executive Officer of FormFactor. “The opening of our Farmers Branch facility reflects our commitment to investing in the capabilities and technology leadership needed to support our customers as they develop the next generation of semiconductor technologies.”

At the probe card level, increasing device complexity is placing greater demands on test performance and capability.

“Our focus is on advancing probe card technologies that deliver the best performance and scalability our customers need to address evolving test challenges and enable their next-generation high-performance compute roadmaps,” said Sudhakar Raman, Senior Vice President and General Manager of FormFactor's Probes Business Unit.

The facility is part of FormFactor's global manufacturing and operations network serving customers throughout Asia, Europe, and North America. The investment reflects the company's continued confidence in the long-term growth of the semiconductor industry and the increasing importance of advanced test and measurement technologies in enabling future innovation.

About FormFactor
FormFactor, Inc. (Nasdaq: FORM) is a leading provider of essential test and measurement technologies along the full IC life cycle – from characterization, modeling, reliability, and design debug, to qualification and production test. Semiconductor companies rely upon FormFactor’s products and services to accelerate profitability by optimizing device performance and advancing yield knowledge. The Company serves customers through its network of facilities in Asia, Europe, and North America. For more information, visit the Company’s website at www.formfactor.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the federal securities laws. These statements are based on management's current expectations and beliefs as of the date of this release and are subject to a number of risks and uncertainties, many of which are beyond the Company's control, that could cause actual results to differ materially from those described in the forward-looking statements.

These forward-looking statements include, but are not limited to, statements regarding customer demand, industry growth, manufacturing capacity, operational capabilities, advanced packaging trends, market opportunities, and the Company's plans, strategies, and objectives for future operations. Forward-looking statements may contain words such as "may," "might," "will," "expect," "plan," "anticipate," "forecast," "continue," and similar expressions and include the assumptions that underlie such statements.

The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: changes in demand for the Company's products; customer-specific demand; market opportunities; anticipated industry trends; manufacturing and supply chain dynamics; labor availability; changes in macroeconomic conditions; export controls, tariffs, and other trade barriers; geopolitical developments; and other factors, including those set forth in the Company's most current Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other filings with the U.S. Securities and Exchange Commission.

No assurances can be given that any of the events anticipated by the forward-looking statements within this press release will transpire or occur, or if any of them do so, what impact they will have on the results of operations or financial condition of the Company. Unless required by law, the Company undertakes no obligation to update or revise any forward-looking statements.

Investor Contact
Stan Finkelstein
Investor Relations
(925) 290-4273
[email protected]

Bank of America Corp DE bought a new stake in FormFactor, Inc. (NASDAQ:FORM – Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor bought 1,783,638 shares of the semiconductor company’s stock, valued at approximately $285,257,000. Bank of America Corp DE owned 2.29% of FormFactor at the end of the most recent quarter.

A number of other large investors have also recently made changes to their positions in FORM. The Manufacturers Life Insurance Company bought a new stake in shares of FormFactor during the second quarter valued at approximately $4,108,000. BlackRock Inc. purchased a new stake in shares of FormFactor in the second quarter valued at approximately $1,676,772,000. Fisher Asset Management LLC grew its stake in FormFactor by 206.4% in the fourth quarter. Fisher Asset Management LLC now owns 436,045 shares of the semiconductor company’s stock worth $24,323,000 after purchasing an additional 293,746 shares in the last quarter. Hanseatic Management Services Inc. bought a new position in FormFactor in the first quarter worth approximately $1,334,000. Finally, Jackson Creek Investment Advisors LLC purchased a new position in FormFactor during the 4th quarter worth $1,704,000. 98.76% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets A number of research firms recently weighed in on FORM. TD Cowen lowered their price objective on shares of FormFactor from $150.00 to $100.00 and set a “hold” rating for the company in a research note on Thursday, July 30th. Cantor Fitzgerald reaffirmed an “overweight” rating on shares of FormFactor in a research report on Monday, July 27th. Zacks Research upgraded shares of FormFactor from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, August 18th. Weiss Ratings raised shares of FormFactor from a “hold (c)” rating to a “hold (c+)” rating in a report on Thursday, August 6th. Finally, B. Riley Financial raised shares of FormFactor from a “neutral” rating to a “buy” rating and set a $165.00 price objective for the company in a research note on Thursday, June 11th. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and four have given a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $127.45.

Check Out Our Latest Stock Report on FORM FormFactor Stock Performance Shares of FORM stock opened at $104.82 on Thursday. The stock has a market cap of $8.17 billion, a PE ratio of 71.79 and a beta of 1.24. The business has a 50-day simple moving average of $110.52 and a 200-day simple moving average of $118.06. The company has a quick ratio of 3.34, a current ratio of 4.08 and a debt-to-equity ratio of 0.01. FormFactor, Inc. has a 52-week low of $31.43 and a 52-week high of $160.27.

FormFactor (NASDAQ:FORM – Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The semiconductor company reported $0.82 EPS for the quarter, beating the consensus estimate of $0.61 by $0.21. FormFactor had a net margin of 12.80% and a return on equity of 13.44%. The company had revenue of $258.24 million for the quarter, compared to analyst estimates of $240.00 million. During the same quarter last year, the business earned $0.27 earnings per share. The firm’s revenue was up 31.9% on a year-over-year basis. FormFactor has set its Q3 2026 guidance at 0.770-0.950 EPS. On average, equities analysts expect that FormFactor, Inc. will post 2.7 EPS for the current year.

Insider Activity at FormFactor In other news, Director Kelley Steven-Waiss sold 2,100 shares of the stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $96.10, for a total transaction of $201,810.00. Following the transaction, the director owned 24,426 shares in the company, valued at $2,347,338.60. This trade represents a 7.92% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Mike Slessor sold 16,002 shares of the business’s stock in a transaction on Friday, August 14th. The stock was sold at an average price of $130.95, for a total transaction of $2,095,461.90. Following the completion of the sale, the chief executive officer directly owned 484,204 shares of the company’s stock, valued at approximately $63,406,513.80. The trade was a 3.20% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.79% of the stock is currently owned by company insiders.

About FormFactor (Free Report)

FormFactor, Inc is a semiconductor test and measurement company that develops and manufactures equipment and components used to evaluate integrated circuits during wafer fabrication and final testing. Its products help semiconductor manufacturers and research organizations measure electrical performance, identify defects and improve yields before chips are packaged and shipped.

The company’s product portfolio includes advanced wafer probe cards, which establish electrical connections with semiconductor wafers during automated testing, as well as engineering probe systems, probe stations and related measurement technologies.

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It has been about a month since the last earnings report for FormFactor (FORM - Free Report) . Shares have added about 4.6% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is FormFactor due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for FormFactor, Inc. before we dive into how investors and analysts have reacted as of late.

FormFactor's Q2 Earnings Beat Estimates, Revenues Increase Y/YFormFactor delivered second-quarter 2026 non-GAAP earnings of 82 cents per share, up 203.7% year over year, and beat the Zacks Consensus Estimate by 34.43%.

Revenues increased 32% year over year to $258.2 million and surpassed the consensus mark of $240 million by 7.55%. Broad demand across high-bandwidth memory, foundry and logic, and co-packaged optics helped FORM post record revenues.

FORM's Probe Card Revenues AdvanceProbe Card revenues reached $209.7 million, increasing 29.4% year over year. The segment benefited from rising test intensity across advanced memory and high-performance computing applications.

Foundry and Logic revenues increased 22.4% year over year to $121.8 million. Growth was led by probe cards for data-center CPU applications, alongside continued networking strength, early momentum in hyperscaler custom ASICs and steady PC and mobile demand.

Management expects further sequential growth in the third quarter, supported by broad demand across its served applications. FORM is also shipping production units for a newly qualified GPU program, which is expected to begin contributing revenues in the second half of 2026.

FORM's DRAM Business Sets Another RecordDRAM revenues jumped 48.9% year over year to $85 million. High-bandwidth memory accounted for approximately two-thirds of DRAM sales, driven by two customers adopting the company’s SmartMatrix full-wafer contactor technology for high-speed HBM4 testing.

SmartMatrix allows customers to test hundreds of completed HBM stacks simultaneously at data rates exceeding 10 gigabits per second. This capability helps verify that HBM stacks are functional before they are combined with expensive GPUs or custom ASICs in advanced packaging.

Third-quarter DRAM revenues are expected to remain comparable with the second-quarter record. However, management anticipates a significant mix shift from HBM toward DDR as memory manufacturers adjust wafer production to capitalize on higher DDR pricing.

FormFactor's Systems Segment ReboundsSystems revenues increased 43.9% year over year to a record $48.5 million. Sales also rose sharply from $27.9 million in the prior quarter, reflecting a recovery in the engineering prober business and accelerating demand for co-packaged optics.

FORM now expects 2026 co-packaged optics revenues to exceed $20 million, surpassing its previous projection of reaching the high end of a $10-$20 million range. The company expects cumulative CPO revenues to cross $20 million by the end of the third quarter, followed by additional contributions in the fourth quarter.

FORM's Margins Show Operating LeverageNon-GAAP gross margin expanded to 53.3% compared with 38.5% reported in the year-ago quarter.

Non-GAAP operating expenses were $65.7 million, up 25.1% year over year.

Non-GAAP operating income rose to $72 million from $22.8 million a year earlier.

FormFactor's Cash Flow and Liquidity ImproveAs of June 27, 2026, cash and cash equivalents and marketable securities were $345.6 million compared with $303.2 million as of March 28, 2026. Cash provided by operating activities was $61.8 million, up from $18.9 million in the year-ago period. Free cash flow totaled $52.6 million compared with a free cash outflow of $47.1 million reported in the year-ago quarter.

FORM continues to expect 2026 cash capital expenditures of $140-$170 million, primarily supporting its Farmers Branch manufacturing expansion. The new facility remains on track to begin ramping in the fourth quarter and continue through 2027. Its initial capacity is expected to be roughly equivalent to the company’s current California probe-card manufacturing footprint.

FORM Offers Upbeat Q3 GuidanceFor the third quarter of 2026, FormFactor expects revenues of $270 million (plus or minus $10 million). At the midpoint, this implies continued sequential growth and another quarterly revenue record.

Non-GAAP gross margin is projected at 54% (plus or minus 150 bps). The margin outlook includes an anticipated $7-$9 million benefit from tariff refunds, partly offset by a less favorable DRAM product mix. Non-GAAP earnings are expected at 86 cents per share (plus or minus 9 cents).

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates review.

The consensus estimate has shifted 52.16% due to these changes.

VGM ScoresCurrently, FormFactor has a great Growth Score of A, a score with the same score on the momentum front. However, the stock was allocated a score of F on the value side, putting it in the fifth quintile for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise FormFactor has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry PlayerFormFactor belongs to the Zacks Electronics - Semiconductors industry. Another stock from the same industry, Amkor Technology (AMKR - Free Report) , has gained 7.2% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.

Amkor Technology reported revenues of $1.9 billion in the last reported quarter, representing a year-over-year change of +25.6%. EPS of $0.70 for the same period compares with $0.22 a year ago.

For the current quarter, Amkor Technology is expected to post earnings of $0.79 per share, indicating a change of +54.9% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #1 (Strong Buy) for Amkor Technology. Also, the stock has a VGM Score of C.

Is Cohu Inc. One of the Cheapest Chip Stocks Around?FormFactor NASDAQ: FORM reported record second-quarter revenue, gross profit and earnings per share, as demand for semiconductor test products increased across high-bandwidth memory, data-center computing and co-packaged optics.

Chief Executive Officer Mike Slessor said the company surpassed a $1 billion annualized revenue run rate and exceeded 50% gross margin during the quarter, marking progress toward the long-term target model introduced in May. That model calls for revenue of $1.6 billion, non-GAAP gross margin of 55% and non-GAAP earnings per share above $5 by 2030.

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“FormFactor's second quarter revenue, gross profit, and earnings per share set all-time records,” Slessor said. He added that the company expects further sequential increases in both revenue and profitability in the third quarter.

Second-Quarter Results Revenue for the second quarter was $258.2 million, up $32.1 million, or about 14%, from the first quarter and $18.2 million above the midpoint of the company’s outlook range. Chief Financial Officer Aric McKinnis said the result represented FormFactor’s third consecutive quarterly revenue record.

GAAP gross margin was 50.7%, compared with 38.4% in the first quarter. The prior-quarter result included $18.8 million in restructuring costs that did not recur in the second quarter. On a non-GAAP basis, gross margin reached 53.3%, up 430 basis points sequentially.

McKinnis said roughly one-third of the sequential gross-margin improvement came from durable baseline cost reductions, one-third reflected the $32 million increase in revenue, and one-third came from items not expected to recur, including tariff refunds and precious-metal recovery associated with the shutdown of the company’s Baldwin Park site.

Excluding those nonrecurring items and favorable product mix, McKinnis said FormFactor’s normalized non-GAAP gross-margin baseline was about 51% at second-quarter volumes. He said the company expects its Farmers Branch, Texas, manufacturing site to be accretive to gross margins once it comes online.

GAAP net income was $56.2 million, or $0.71 per diluted share, compared with $20.4 million, or $0.26 per share, in the first quarter. Non-GAAP net income was $65 million, or $0.82 per diluted share, compared with $44.5 million, or $0.56 per share, in the first quarter. Free cash flow totaled $52.6 million, up from $30.7 million in the prior quarter. Cash and investments increased $42.8 million sequentially to $349 million. Systems-segment revenue reached a record $48.5 million, rising $20.6 million, or 74%, from the first quarter. McKinnis said the recovery reflected stronger engineering-prober demand and accelerating co-packaged optics revenue.

HBM, DDR and Foundry Demand FormFactor’s DRAM probe-card business posted another record quarter as demand for HBM4 products increased alongside continued DDR demand. HBM accounted for approximately two-thirds of overall DRAM revenue during the period, according to Slessor.

The company said two customers continued to adopt its SmartMatrix full-wafer contactor technology for high-speed HBM4 testing. Slessor said the technology allows customers to test hundreds of completed HBM stacks simultaneously at HBM4 data rates exceeding 10 gigabits per second.

For the third quarter, however, FormFactor expects overall DRAM revenue to remain comparable with the second-quarter record while the mix shifts materially toward DDR. Slessor attributed that expected shift to constrained memory supply and increased DDR pricing, which he said is prompting customers to adjust wafer-start mixes toward DDR designs.

Foundry and logic probe-card demand also increased significantly from the first quarter, driven primarily by data-center CPU applications, continued networking strength, early momentum in hyperscaler custom ASICs, and steady PC and mobile demand.

Slessor said increasing CPU compute intensity associated with agentic AI use cases is creating probe-card opportunities. He cited FormFactor’s incumbent position with a data-center CPU supplier, an expanding relationship with a high-performance-compute leader across networking, GPU and CPU products, and multiple design wins at a large fabless XPU customer.

He characterized the company’s current share at the fabless CPU customer as low single digits but said it has additional opportunity over time. Capacity availability could limit the pace of share expansion until Farmers Branch begins ramping, he said.

Co-Packaged Optics Gains Momentum FormFactor increased its outlook for co-packaged optics, or CPO, revenue after seeing faster-than-expected adoption. The company had initially forecast 2026 CPO revenue of $10 million to $20 million but now expects to exceed $20 million by the end of the third quarter and to finish the full year significantly above that level.

The growth is being supported by planned increases in CPO chip volumes later in the year and FormFactor’s role in testing photonic integrated-circuit wafers before they are combined with electrical integrated circuits to create optical modules, Slessor said.

While he said FormFactor is seeing “strong acceleration” in the business, Slessor did not provide a detailed quarterly CPO forecast for 2027, citing variables including customer adoption, yields and test times. The company has previously identified a CPO served market of about $400 million by 2030.

Capacity Expansion and Third-Quarter Outlook FormFactor’s Farmers Branch facility remains on track to begin ramping at the end of 2026 and continue ramping through 2027. The initial targeted capacity is roughly equivalent to the company’s existing California probe-card manufacturing footprint, McKinnis said.

The company expects 2026 cash capital expenditures for Farmers Branch and other capacity additions of $140 million to $170 million. It also expects total pre-production ramp costs of about $25 million to $30 million this year, including roughly $12 million incurred through the second quarter and approximately $7 million expected in the third quarter.

McKinnis said FormFactor expects Farmers Branch to be accretive to gross margin after reaching its initial target capacity, which is anticipated by the beginning of 2028. The company has received incentives that include a $24.2 million grant from the Texas Semiconductor Innovation Fund, subject to meeting certain criteria.

For the third quarter, FormFactor forecast revenue of $270 million, plus or minus $10 million, and non-GAAP gross margin of 54%, plus or minus 150 basis points. The outlook includes expected tariff refunds that McKinnis said would contribute about 300 basis points to gross margin. The company forecast non-GAAP earnings per diluted share of $0.86, plus or minus $0.09.

About FormFactor (NASDAQ:FORM)FormFactor, Inc NASDAQ: FORM is a leading provider of advanced test and measurement solutions for the semiconductor industry. The company specializes in the design, development and manufacture of high-performance wafer-level and package-level test interfaces used in wafer sort, characterization, reliability and failure analysis applications. By leveraging precision microelectromechanical systems (MEMS) and photolithographic processes, FormFactor delivers probe cards, analytical probes and test sockets that enable device makers to validate next-generation integrated circuits across logic, memory, RF, analog and power applications.

FormFactor's product portfolio includes custom probe cards for wafer probers, TEM-based analytical probes for material and device characterization, and socket solutions for burn-in and final test of packaged devices.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Key Takeaways FormFactor shares surged 110.7% YTD as record DRAM revenue and HBM demand fueled outperformance.FORM is expanding beyond memory into networking chips, GPUs, custom ASICs and co-packaged optics.FORM targets $240 million in Q2 2026 revenues, while heavy expansion spending may pressure margins. FormFactor (FORM - Free Report) shares have jumped 110.7% year to date (YTD), outperforming the Zacks Computer and Technology sector’s appreciation of 17%. The outperformance can be attributed to record DRAM revenues, driven by an accelerating high-bandwidth memory (HBM) demand and sharp margin expansion. However, FORM’s prospect remains dependent on continuing AI infrastructure spending. Heavy investments in the Farmers Branch manufacturing expansion are likely to keep margins under pressure.

Nevertheless, we believe FORM’s share price is well-poised to appreciate, driven by strong demand for HBM as well as an expanding AI exposure beyond memory into networking, GPUs and custom ASICs. These factors are expected to strengthen FORM’s competitive position against broader semiconductor competitors, including Teradyne (TER - Free Report) , Cohu (COHU - Free Report) and KLA (KLAC - Free Report) YTD. Shares of Cohu, KLA and Teradyne have returned 141.4%, 90.5% and 85.8%, respectively. So, what should investors do with the stock? Let’s dig deep to find out.

FORM Stock’s Price Performance
Image Source: Zacks Investment Research

AI & Strong HBM Demand Aids FORM’s ProspectFormFactor is one of the biggest beneficiaries of the AI infrastructure buildout through its leadership in HBM probe cards. The company expects another record DRAM revenue growth in the second quarter of 2026 as a second major customer ramps up adoption of FORM’s SmartMatrix technology. The company also highlighted that the transition from HBM3 to HBM4 and eventually HBM5 increases test intensity and market-share opportunities.

FormFactor is now winning business across networking chips, data-center CPUs, GPUs and custom ASICs. Management noted that networking growth helped a leading high-performance computing customer become a 10% customer for the first time. FORM also secured additional GPU design wins, expects production shipments in the second half of 2026 and is deepening engagements with hyperscalers on custom ASICs. This broadens AI exposure and reduces dependence on any single product category.

FormFactor is also benefiting from the emergence of co-packaged optics (CPO), an important AI networking technology. The company raised its 2026 CPO revenue outlook toward the high end of the previously guided $10-$20 million range, citing faster production ramps and growing demand for Triton production-test systems developed with Advantest and Tokyo Electron. Through its Triton production-test platform and Keystone Photonics acquisition, FORM expects accelerating CPO adoption to become another long-term growth driver.

FormFactor sits at the intersection of two of the industry's strongest secular trends - high-performance computing and advanced packaging. As chips become more complex, advanced packaging, HBM stacks and chiplet architectures require substantially more testing, increasing probe card demand. At Investor Day, FormFactor outlined plans to double revenue by 2030 while more than doubling non-GAAP earnings, supported by AI infrastructure growth, advanced packaging adoption and higher test intensity.

FORM’s Earnings Estimate Revision Shows Positive TrendFormFactor’s guided second-quarter 2026 revenues to $240 million (plus or minus $5 million), with non-GAAP gross margin expected at 49.5% (plus or minus 1.5%), and non-GAAP earnings projected at 61 cents (plus or minus 4 cents) per share.

The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at 61 cents per share, up 10.9% over the past 60 days and indicating 125.93% growth over the year-ago quarter’s reported figure. The consensus mark for second-quarter 2026 revenues is pegged at $240.1 million, suggesting 22.6% growth from the year-ago quarter’s reported figure.

The Zacks Consensus Estimate for 2026 earnings is pegged at $2.40 per share, up 5.7% over the past 60 days and indicating 84.62% growth over 2025’s reported figure. The consensus mark for 2026 revenues is pegged at $958.05 million, suggesting 22.1% growth from 2025’s reported figure.

FORM Shares Are Trading at a PremiumFormFactor shares are trading at a premium as suggested by a Value Score of F.

In terms of the forward 12-month price-to-sales (P/S), the company is trading at 9.23X compared with the broader sector and peers. The broader sector is trading at 6.98X while Cohu, Teradyne and KLA trade at 4.28X, 11.24X and 17.47X, respectively.

FORM Stock’s Valuation
Image Source: Zacks Investment Research

ConclusionFormFactor is benefiting from the rapid expansion of AI infrastructure, leveraging its leadership in semiconductor probe cards and wafer-level testing technologies. As hyperscalers and chipmakers invest heavily in AI servers, the demand for HBM, GPUs, networking chips and custom AI accelerators continues to rise, significantly increasing the need for advanced semiconductor testing solutions. Momentum is also supported by co-packaged optics programs, including the Triton production-test ramp and the Keystone Photonics acquisition that expands optical probing capability. These factors justify a premium valuation.

FormFactor currently sports a Zacks Rank #1 (Strong Buy), which implies that investors should start accumulating the stock right now. You can see the complete list of today’s Zacks #1 Rank stocks here.