BN · rank #17 · 2026-10-19
FORM
NASDAQ · $8.20B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.17 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +18.4% |
| Forward net margin Consensus forward net margin. | +13.7% |
| Net margin TTM Trailing twelve month net margin. | +12.8% |
| Margin expansion Forward minus trailing net margin (percentage points). | +0.9% |
| Forward PEG Forward P/E to growth. Below 1 is cheap for the growth. | 1.39 |
| Debt / FCF Net debt relative to free cash flow. Lower is safer. | 0.22× |
| Analyst upside Spread between the consensus 12m target and the current price. | +46.5% |
| Last EPS surprise Most recent reported EPS versus consensus. | +45% |
| Market cap (USD) | $8.20B |
The AI research card
Independent qualitative review of each pick before the order is placed. On the rare day the research service is unavailable, the paper book trades on the quant ranking alone and no card appears here.
Summary
FormFactor designs and supplies semiconductor probe cards, interface solutions, and test systems critical for qualifying HBM stacks, chiplets, 2.5D/3D packages, and silicon-photonic devices before high-volume production.
Rationale
Record Q2 revenue of $258.2M (+31.9% YoY), a 45% EPS surprise, the Teradyne $300M strategic equity partnership, and CPO revenue guidance raised well above the prior $10M–$20M range collectively confirm FORM is an active, revenue-generating bottleneck in the AI chip supply chain rather than a sentiment proxy.
Material risks
- 1No disclosed sole-source protection or order backlog means the bottleneck-solver moat rests on proprietary know-how and customer stickiness rather than contractual lock-in, leaving FormFactor exposed if HBM leaders like SK Hynix or Samsung internalize probing/characterization at scale.
- 2Institutional 13F median ownership fell 11.3% across 20 reporting holders, signaling smart-money distribution that could cap near-term upside even as fundamentals improve, and Teradyne deal closing conditions introduce execution risk on the strategic partnership.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 2 of 3 voted to proceed.