QM · rank #12 · 2026-09-09
FORM
NASDAQ · $7.53B (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +293.53% |
|---|---|
| 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 2026-08-10 | $112.47 |
| 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 a semiconductor test equipment company supplying probe cards and test systems to chipmakers requiring wafer-level testing at advanced process nodes, with AI/HPC demand driving three consecutive quarterly revenue records through Q2 fiscal 2026.
Rationale
The quality_momentum signal is reinforced by hard fundamentals — 31.9% YoY revenue growth, 50.7% GAAP gross margin, 10.99% ROE, and 12.8% profit margin — all consistent with a quality compounder accelerating into a structural AI-driven test intensity upcycle.
Material risks
- 1Q2 results included non-recurring tariff refunds that artificially boosted margins, meaning the reported 53.3% non-GAAP gross margin may not be a clean run-rate, risking a momentum stall if Q3 margins normalize visibly below consensus.
- 2FormFactor discloses no formal long-term contracts or named backlog, so revenue visibility depends on chipmaker capex cycles; a sudden AI infrastructure spending pause or inventory correction at key customers would hit FORM disproportionately given its short-cycle probe card consumables model.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.