Quality Momentum

QM · rank #6 · 2026-06-05

FORM

NASDAQ · $9.75B

verdict · PROCEED

The exact numbers the algorithm saw.

Factor scores and the inputs behind this pick.
Momentum 12-1
Return from 12 months ago to 1 month ago.
+407.56%
ROE TTM
Return on equity, trailing 12 months.
+6.8%
Profit margin
Net profit margin, trailing 12 months.
+8.1%
Market cap
Size filter: > $500M required.
$9.75B
Anchor (recent)
Close on 2026-05-06
$149.12
Anchor (far)
Close on 2025-05-06
$29.38

The AI research card

Independent qualitative review of each pick before the order is placed.

Summary

FormFactor is a leading semiconductor test equipment supplier specializing in probe cards and cryogenic systems for advanced wafer-level testing at leading-edge nodes and in AI/HBM packaging.

Rationale

Strong 12-month momentum (4.08) is supported by Q1 2025 revenue growth of 27% YoY, beat guidance, and robust forward demand from advanced packaging and AI-driven logic/memory capex, while 6.75% ROE and 8.14% profit margin reflect operational leverage in a high-barrier, mission-critical supplier role.

Material risks

  • 1Concentrated customer base among major foundries and memory manufacturers creates acute exposure to customer-specific capex cuts or insourcing of probe card capabilities, which could rapidly reverse near-term revenue momentum.
  • 2U.S.–China export controls and geopolitical tensions pose material risk to shipments of advanced test technology and capex demand from Chinese semiconductor customers, a key growth driver.

Verdict reasoning

two_stage score=+3/3 verdicts={'openai': 'PROCEED', 'claude': 'PROCEED', 'gemini': 'PROCEED'} brief=caller-supplied