QM · rank #9 · 2026-09-07
FORM
NASDAQ · $7.53B (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +310.74% |
|---|---|
| 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 2026-08-07 | $117.39 |
| Anchor (far) Close on 2025-08-08 | $28.58 |
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 wafer-test systems, enabling chip manufacturers to optimize yield and device performance across the IC lifecycle.
Rationale
Record Q2 2026 revenue of $258.2M (+32% YoY), non-GAAP EPS tripling to $0.82, non-GAAP gross margins of 53.3% well above the company's own 47% long-term target, and three consecutive quarterly revenue records directly validate both the quality (ROE, margins) and momentum (price, earnings) signals the model is capturing.
Material risks
- 1Semiconductor capex cyclicality is the primary thesis-breaker — probe card demand is directly tied to wafer starts and fab utilization, and a sharp industry downturn could rapidly reverse the revenue momentum that is driving the signal.
- 2Margin sustainability risk — non-GAAP gross margins at 53.3% are materially above historical targets, raising the question of whether current pricing power and mix (advanced node probe cards) can hold as customers push back or competition from Cohu/Technoprobe intensifies.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.