FormFactor (FORM) Stock Forecast & Price Target

FormFactor is positioned favorably because its probe-card leadership sits at the center of wafer-level testing, which becomes more critical as advanced packaging, HBM, silicon photonics, and AI-related chip designs raise both test intensity and complexity. Strategic validation from Teradyne’s $300 million investment and other 2025 partnership activity reinforces the company’s competitive moat, while the on-track start-up of the Farmers Branch facility should add capacity to meet demand and support a healthier mix. Financially, management-guided 3Q26 revenue of $260 million-$280 million and adjusted EPS of $0.77-$0.95, alongside FY26 EPS of $3.06 and FY25 revenue of $785 million, suggest strong momentum and room for further scaling.

FormFactor is exposed to a highly cyclical semiconductor test-and-measurement market, where demand can weaken quickly in downturns and customer-specific order patterns are volatile. Its heavy reliance on a handful of large chipmakers, including Intel at 17.0% of FY23 revenues, limits pricing power and makes lost contracts or weaker purchasing decisions especially damaging to growth and profitability. Technological obsolescence, excess and obsolete inventory of roughly $15 million in FY25 versus about $12 million in FY24, declining China revenue to $58 million or 7% of total in FY25, and dependence on M&A add further pressure to margins, returns, and long-term competitiveness.