QM · rank #9 · 2026-09-04
FORM
NASDAQ · $7.53B (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +292.72% |
|---|---|
| ROE TTM Return on equity, trailing 12 months. | +11.0% |
| Profit margin Net profit margin, trailing 12 months. | +12.8% |
| Market cap (USD) Size filter: > $500M required. | $7.53B |
| Anchor (recent) Close on 2026-08-05 | $114.44 |
| Anchor (far) Close on 2025-08-05 | $29.14 |
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 is the leading provider of semiconductor probe cards and test systems used by chipmakers to optimize device performance and yield across the IC lifecycle.
Rationale
Record Q2 2026 revenue of $258.2M (+32% YoY), non-GAAP EPS tripling to $0.82 versus $0.27, and non-GAAP gross margins of 53.3% well above the company's own 47% long-term target directly validate the quality_momentum screen's ROE, margin, and price-momentum signals as fundamentally grounded rather than sentiment-driven.
Material risks
- 1Semiconductor capex cyclicality is the primary thesis-breaker — probe card demand is tightly coupled to wafer starts and fab utilization, and a downturn in leading-edge node ramps (particularly AI/HBM-adjacent logic and DRAM) could rapidly reverse the sequential revenue momentum that underpins the signal.
- 2Customer concentration risk at advanced nodes means that if a top-tier foundry or IDM (e.g., TSMC, Intel, Samsung) accelerates in-house probe card development or shifts test methodology toward contactless or EDA-simulation alternatives, FormFactor's sole-supplier depth at those nodes erodes faster than the financials would initially signal.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.