FormFactor (FORM) Stock Forecast & Price Target

FormFactor is a leading supplier of advanced semiconductor wafer test probe cards and engineering test and measurement systems, with a strong market position and multiple product lines. The company's focus on driving gross margin improvement and structural changes in manufacturing have led to better-than-expected results and potential for continued growth through CY26. Ramped demand for AI packaging is a key driver for the company, and management's focus on innovation and improvements in yield and cycle times also bode well for their outlook. Upside risks include accelerated demand due to rapid customer innovation and the company's strong positioning with major customers, while risks such as prolonged shifts in GM mix and global economic conditions could hinder growth.

FormFactor is expected to see moderate revenue growth in the near-term, driven by probe card shipments for AI and networking markets, while systems revenue is expected to decline. However, the lackluster performance of end markets like phones and PCs could be a hindrance to significant growth, despite the potential contribution from AI GPU/ASIC markets. With operating expenses expected to increase in the near future and the possibility of tariff headwinds, the company's profitability may also be impacted.