BN · rank #14 · 2026-10-20
FORM
NASDAQ · $8.59B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.14 |
|---|---|
| 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. | +39.7% |
| Last EPS surprise Most recent reported EPS versus consensus. | +45% |
| Market cap (USD) | $8.59B |
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 (FORM) makes semiconductor probe cards, probe systems, and characterization tools that sit at a critical test bottleneck for HBM, advanced packaging, CPO, and silicon photonics.
Rationale
The stock fits the bottleneck_solvers theme because AI-driven HBM and 2.5D/3D packaging ramps are increasing test complexity, while Q2 revenue hit a record $258.2M and the Teradyne collaboration plus $300M equity investment validates the platform.
Material risks
- 1Key customers could internalize probing/test/characterization or shift volumes to competitors like Advantest, Micronics Japan, Chunghwa Precision Test, or Protec MEMS, eroding the bottleneck moat.
- 2The thesis depends on continued AI/HBM and advanced-packaging capex, which can reverse quickly if semiconductor spending slows or if China/export-control issues interrupt ramps.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 1 of 3 voted to proceed.