FormFactor Inc. (FORM) is a leading supplier of semiconductor probe cards, which are used to test chips during manufacturing. Its products sit at a critical step in the production process, particularly for advanced chips used in AI, high-performance computing, and memory applications, writes Tyler Laundon, editor of Cabot Early Opportunities.
The company has a market cap just shy of $12 billion. It is emerging from a relatively subdued growth period (revenue was up just 2.8% in 2025) and entering a new growth phase. At its Investor Day in May, management emphasized that FormFactor is positioned at the intersection of two of the most powerful trends in semiconductors: high-performance computing (HPC) and advanced packaging.
FormFactor Inc. (FORM)
As chips become more complex – especially with the rise of chiplets and high-bandwidth memory (HBM) – testing requirements increase, driving higher demand for FormFactor’s probe cards. That demand is now clearly showing up in the numbers.
In the fourth quarter of 2025, revenue accelerated to grow at 13.6%, which drove a 65% increase in adjusted earnings per share. In the first quarter of 2026 (reported April 30), revenue surged by 32% to $226 million. EPS rose 349% to $0.46.
Management expects continued improvement throughout the year, with another record quarter (powered by DRAM probe card sales) likely in Q2. To support growth, FormFactor has a new site (Farmers Branch) coming online later this year. It's expected to help drive margin expansion in 2027 and beyond. Analysts are currently calling for 2026 revenue growth of 22.8% to $960 million and EPS growth of 150% to $2.
Recommended Action: Buy FORM.
