FormFactor (FORM) Stock Forecast & Price Target

FormFactor Inc. is positioned for future growth as management anticipates an increase in sales across the full year, despite current softness in consumer-led markets. The company’s outlook includes expectations for a rebound in foundry/logic probe card revenue, particularly with significant upcoming business opportunities tied to fabless microprocessor customers and the HBM4 transition, which is expected to drive new demand for probe cards. Additionally, the diversification into engineering systems, alongside an expected recovery in the semiconductor market, supports the potential for FormFactor to achieve a run rate of $200 million, reflecting confidence in long-term growth prospects.

FormFactor Inc. has experienced a significant downturn, with a reported revenue of approximately $190.1 million for 4Q24, marking a 9% quarter-over-quarter decline, largely attributed to a 23% drop in foundry-logic revenue and an unexpected loss of Intel as a key customer. The company has guided for 1Q25 revenue to decrease by an additional 10% quarter-over-quarter, falling short of both internal and consensus expectations, along with downward revisions in gross margin forecasts due to a higher mix of lower-margin DRAM products. Analysts project continued challenges, with expectations of declining probe card revenue and modest growth in the engineering systems segment, raising concerns about the company's ability to navigate the ongoing semiconductor downturn, potentially extending through 2026.