QM · rank #9 · 2026-10-23
FORM
NASDAQ · $8.40B (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +253.90% |
|---|---|
| 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. | $8.40B |
| Anchor (recent) Close on 2026-09-23 | $131.26 |
| Anchor (far) Close on 2025-09-23 | $37.09 |
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 designs and sells probe cards, probe stations, and interface/characterization systems that serve as a precision testing bottleneck for DRAM/HBM, advanced packaging, and co-packaged optics at leading semiconductor manufacturers.
Rationale
The momentum_12_1 of 2.54 is reinforced by fundamental acceleration—31.9% YoY revenue growth to a record $258M in Q2, expanding gross margins near 53% non-GAAP, and a $300M strategic equity validation from Teradyne—while ROE of ~11% and 12.8% profit margins confirm the quality screen is not purely sentiment-driven.
Material risks
- 1The Teradyne collaboration, while strategically validating, introduces a well-resourced partner with its own test-equipment ambitions into FormFactor's core workflow, raising the medium-term risk that Teradyne internalizes probe/interface know-how and reduces dependence on FORM.
- 2Q3 earnings land October 28 (5 days post as-of-date), creating binary event risk where any HBM demand softness or mix shift in the $270M guidance could sharply reverse the momentum signal before a position matures.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.