FormFactor FORM is benefiting from the rapid expansion of AI infrastructure, leveraging its leadership in semiconductor probe cards and wafer-level testing technologies. As hyperscalers and chipmakers invest heavily in AI servers, the demand for high-bandwidth memory (HBM), GPUs, networking chips and custom AI accelerators continues to rise, significantly increasing the need for advanced semiconductor testing solutions.

The company is positioned at the intersection of high-performance computing (HPC) and advanced packaging, two of the fastest-growing segments of the semiconductor industry. FormFactor highlighted record revenues from DRAM probe cards, driven by strong HBM demand, while networking applications also delivered robust growth. FormFactor expects another record quarter for DRAM probe cards as customers accelerate the transition from HBM3 to HBM4 and eventually HBM5. The company's proprietary SmartMatrix technology enables simultaneous testing of hundreds of HBM stacks at HBM4 speeds, giving it a competitive advantage as AI memory complexity increases.

AI infrastructure demand is also expanding opportunities beyond memory. FormFactor is seeing increasing demand for probe cards used in networking processors, data center CPUs, GPUs and custom ASICs. Management noted that networking growth helped a leading high-performance computing customer become a 10% customer for the first time, while GPU production qualification is nearing completion, with volume shipments expected in the second half of 2026. The company is also deepening engagements with hyperscalers developing custom AI chips.

FormFactor is also benefiting from the emergence of co-packaged optics (CPO), an important AI networking technology. The company raised its 2026 CPO revenue outlook toward the high end of the previously guided $10-$20 million range, citing faster production ramps and growing demand for Triton production-test systems developed with Advantest and Tokyo Electron. Through its Triton production-test platform and Keystone Photonics acquisition, FORM expects accelerating CPO adoption to become another long-term growth driver. At its Investor Day, FORM management projected that strong demand across HBM, GPUs, networking, custom ASICs and CPO would help double revenue by 2030 while supporting continued market share gains in AI infrastructure.

FORM Faces Tough Competition

FormFactor is facing significant competition from the likes of Teradyne TER and Cohu COHU.

Teradyne’s leadership in automated test equipment (ATE) is a key catalyst. As AI chip production accelerates, Teradyne’s UltraFLEX and UltraFLEXplus platforms are widely used to test high-performance GPUs, AI accelerators, networking processors and advanced data center semiconductors from leading chipmakers. The company continues to benefit from rising test complexity as larger AI processors require more sophisticated and longer testing cycles. Teradyne’s strong relationships with major semiconductor manufacturers and a broad installed base make it a key player in AI semiconductor manufacturing.

Cohu’s offering of semiconductor test handlers, contactors, interface products and inspection solutions that support the production of AI processors, networking chips and high-performance computing devices has been a major driver. The company has been expanding its capabilities in advanced packaging and high-performance test applications, enabling customers to improve throughput, automation and yield as AI semiconductor complexity continues to increase. Cohu's broad portfolio allows it to participate across multiple stages of semiconductor testing, particularly in high-volume manufacturing environments.

FORM’s Share Price Performance, Valuation & Estimates

Shares of FormFactor have appreciated 97.3% year to date, outperforming the broader Zacks Computer and Technology sector’s rise of 16.6%.

FORM Stock’s Price Performance

The FORM stock is trading at a premium, with a forward 12-month price/earnings of 47.26X compared with the broader sector’s 24.98X. FormFactor has a Value Score of F.

FORM’s Valuation

The Zacks Consensus Estimate for FORM’s 2026 earnings is currently pegged at $2.40 per share, unchanged over the past 30 days, suggesting 84.6% growth from 2025’s reported figure.

FormFactor, Inc. Price and Consensus

FormFactor, Inc. price-consensus-chart | FormFactor, Inc. Quote

FormFactor currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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