Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 2 Jun, 26 | FORM | Buy | USD 124.52 | USD 131.0 | USD 139.0 | 10 days | Closed |
11.92%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
FormFactor, Inc. designs, manufactures, and sells probe cards, analytical probes, probe stations, thermal systems, cryogenic systems, and related services in the United States, South Korea, Taiwan, China, Japan, Singapore, Europe, Malaysia, and internationally. The company operates in two segments: Probe Cards and Systems segments. The company provides probe cards to test various semiconductor device types, including systems- on-chip products, such as graphics, central, digital processing units, and other custom application-specific processing units; mobile application processors, microprocessors, and microcontrollers; network devices, which include switches and network processing units; dynamic random-access memory; radio-frequency amplifiers and filters; antenna-in-package devices; analog and mixed-signal integrated circuits; image sensors; co-packaged optical integrated circuits; NAND flash memory; NOR flash memory; and quantum computer processor devices. It also offers analytical probes, which are used for device characterization, electrical simulation model development, failure analysis, and prototype design debugging; probe stations, a critical tool for the development of new generations of semiconductor and electro-optical processes and designs; and thermal subsystems, which include thermal chucks and other test systems used in probe stations and other applications for precise temperature management. In addition, the company provides cryogenic systems, which includes the manufacture of precision cryogenic instruments and semiconductor test and measurement systems; and services and support, including installation services. Further, it offers on-site probe card maintenance and service training, seminars, and telephone support services. It markets and sells its products through direct sales force, manufacturers' representatives, and distributors. The company was incorporated in 1993 and is headquartered in Livermore, California.
Increase in Gross Profit: USD 86.8 Mn in Q1FY26 vs USD 64.5 Mn in Q1FY25
Increase in Revenue: USD 226.1 Mn in Q1FY26 vs USD 171.4 Mn in Q1FY25
Increase in Factory Start-Up Costs: USD 7.1 Mn in Q1FY26 vs USD 0.0 Mn in Q1FY25
Decrease in United States Revenue: USD 29.4 Mn in Q1FY26 vs USD 40.3 Mn in Q1FY25
FormFactor faces risks related to semiconductor industry cyclicality, customer concentration, restructuring execution, tariff-related cost pressures, supply-chain dependence, lower Systems demand, foreign exchange volatility, and uncertainty around successful ramp-up of new manufacturing capacity
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 124.52 | 111.0 | 131.0 | 139.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Record Revenue and Profitability Expansion: FormFactor, Inc. delivered record quarterly revenue in Q1FY26, supported by stronger demand across Probe Cards, Foundry & Logic, and DRAM markets. Revenue rose to USD 226.1 million, while net income increased to USD 20.4 million, reflecting improved operating leverage and stronger customer demand.
AI and HBM Demand Driving Probe Cards: The company benefited from higher demand for high-bandwidth memory designs used in generative AI applications. Probe Cards revenue increased sharply to USD 198.3 million in Q1FY26, supported by DRAM strength and higher demand for networking and high-performance compute microprocessor designs.
Margin Improvement Despite Restructuring Costs: Gross profit improved to USD 86.8 million in Q1FY26, with gross margin expanding to 38.4%. The company’s focus on manufacturing efficiency, better factory utilization, favorable product mix, and cost-structure initiatives supported profitability despite restructuring charges and tariff-related cost pressure.
Strong Liquidity and Capacity Expansion: FormFactor maintained a solid liquidity position, with cash, cash equivalents, and marketable securities of USD 303.3 million as of Q1FY26. The company also continued expanding its manufacturing footprint through the Farmers Branch, Texas facility, expected to support incremental capacity and a favorable cost structure.
Restructuring Supports Long-Term Financial Model: The company adopted restructuring plans to align manufacturing capacity with strategic priorities and improve gross margins. While near-term charges impacted expenses, facility consolidation and manufacturing optimization are expected to strengthen operational efficiency and support long-term profitability.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given to FormFactor, Inc. (NASDAQ: FORM) at the current market price of USD 124.52, as on 02 June,2026 at 7:05 am PDT
Data Powered by EOD Historical Data (“EODHD”).
Sector: Technology Industry: Semiconductor Equipment & Materials
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| FORM FormFactor Inc |
9.60 6.86% | 149.55 | 205.86 | 76.34 | 14.11 | 10.69 | 13.80 | 100.74 |
| ASML ASML Holding NV ADR |
61.85 3.31% | 1929.68 | 48.54 | 41.49 | 17.21 | 23.21 | 14.06 | 36.48 |
| ASMLF ASML Holding NV |
- -% | 1937.15 | 48.31 | 41.32 | 16.88 | 23.07 | 14.07 | 36.51 |
| AMAT Applied Materials Inc |
24.19 4.08% | 617.11 | 40.44 | 36.23 | 11.09 | 14.41 | 11.04 | 30.52 |
| ADTTF Advantest Corporation |
- -% | 150.42 | 78.05 | 44.84 | 0.12 | 29.94 | 19.93 | 49.55 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on June 2, 2026. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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