BN · rank #17 · 2026-10-22
FORM
NASDAQ · $8.76B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.13 |
|---|---|
| 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. | +35.7% |
| Last EPS surprise Most recent reported EPS versus consensus. | +45% |
| Market cap (USD) | $8.76B |
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 device-characterization tools that are increasingly critical to HBM, advanced packaging, CPO, and silicon-photonics test flows.
Rationale
The quant setup fits a bottleneck-solver because AI-driven chip complexity is lifting revenue, margins, and earnings surprises while the Teradyne collaboration strengthens FormFactor’s position in high-end test and characterization.
Material risks
- 1The biggest thesis breaker is that large customers could internalize probing/test capabilities or shift volumes to alternative suppliers, which would erode FormFactor’s bottleneck advantage and pricing power.
- 2The stock still faces cyclicality and execution risk around HBM/CPO ramps, and the Teradyne partnership/financing and AI demand could disappoint if semiconductor capex slows.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 1 of 3 voted to proceed.