- Stock Price: FormFactor (NASDAQ:FORM) closed at about $59.01 on Oct 30, 2025, up ~23.7% on the day [1]. The stock hit a fresh 52-week high (around $59) after the rally.
- Q3 Results: Third-quarter 2025 revenue was $202.7 million (versus ~ $200M consensus), and adjusted EPS was $0.33 (vs. $0.25 est.) [2]. Management guided Q4 well above consensus (roughly $210M rev and $0.35 EPS) [3].
- YoY/Sequential: Q3 revenue rose ~3.5% from Q2, but was ~2.5% below year-ago sales [4]. Importantly, management expects “higher results” in Q4 [5].
- Analysts & Targets: Wall Street reactions were upbeat. Citi just upgraded FORM to Buy with a $62 target [6], citing strength in AI-related memory (HBM) and GPU testing demand. B. Riley recently lifted its price target into the mid-$40s [7]. The consensus target (mid-$40s) still trails the current price [8].
- Sector Movers: FormFactor’s surge was one of the day’s leaders. Tech news site TS2.Tech noted FormFactor jumping +23.6% on its Q3 beat [9]. (For comparison, Teradyne’s stock also spiked ~20% on Oct 28 after a strong AI-driven quarter [10].)
- Market Context: FORM is up ~33% year-to-date [11]. Peer companies in semiconductor test/measurement (e.g. Teradyne, Keysight, Advantest, Cohu) have generally reported solid results on rising chip-test demand, though none saw as dramatic a one-day jump.
Stock Price & Recent Movement
FormFactor’s shares surged on Oct 30, 2025, reaching about $59 at close – roughly a 24% gain for the day [12]. This move followed the company’s strong earnings report and guidance. Early on Oct 30 the stock was up ~7–8%, but continued climbing into the afternoon. Notably, TS2.Tech highlighted FormFactor as a top midday mover, with shares +23.6% by noon on heavy volume [13]. (By comparison, the Nasdaq Composite was only slightly positive that day.) The stock’s rally lifted its market cap to about $3.5 billion and marked a new 52-week high, reflecting renewed investor optimism.
Q3 2025 Financial Results and Guidance
FormFactor reported blowout Q3 results on Oct 29. Revenue came in at $202.7M, beating forecasts (roughly $200M) [14]. Non-GAAP EPS was $0.33, well above the $0.25 analysts expected [15]. Analysts noted that profit margins improved – the company “drove higher profits on a lower revenue base” [16]. (In fact, Q3 revenue was only up ~3.5% sequentially and down ~2.5% year-on-year [17], indicating growth came from efficiency.)
Management’s outlook was even more important. FormFactor guided Q4 revenue ~ $210M and EPS ~$0.35, well above Wall Street’s prior estimates [18]. In its press release the company stressed it expects to “deliver higher results in the fourth quarter” [19]. This optimistic forecast – driven by robust demand for high-bandwidth memory and advanced chip probes – clearly fueled the stock’s surge. The combination of the earnings beat and strong guidance led investors to bid up the stock aggressively.
Analyst Commentary and Price Targets
Wall Street analysts reacted positively. Citi’s analyst (Elizabeth Sun) upgraded FormFactor to a Buy with a $62 price target [20], calling the quarter a “beat and raise” on faster-than-expected margin improvement. Citi specifically cited strength in high-bandwidth memory (HBM) chip testing and upcoming GPU/pro graphics demand as reasons for its bullish outlook [21]. Similarly, Evercore ISI raised its 12-month target to ~$50 on Oct 30 [22]. B. Riley lifted its target from $47 to the low $50s earlier in the month [23]. By contrast, some more conservative shops remain at “Hold” ratings with targets in the $30–40 range [24] [25].
Overall, the average analyst price target (~$42–43 [26]) is still below the current stock price, implying that the consensus view is cautiously holding, despite recent upgrades. As MarketBeat noted, analysts’ consensus on FormFactor was around “Hold” even before the latest results. The wide range of targets – from the mid-$30s up to the $60s – reflects differing views on how fast end-market demand will ramp. Investors should note that although the guidance is strong, FormFactor has historically been a volatile stock.
Peer Comparison – Semiconductor Test Sector
FormFactor operates in the semiconductor test and measurement sector. Its products (wafer probe cards, systems) are used by chip makers for memory, processor and logic testing. In this context, several peers also reported robust earnings in late October. For example, Teradyne (TER) saw its stock jump ~21% on Oct 28 after reporting better-than-expected Q3 results and very strong AI-driven guidance [27]. Teradyne, a maker of automated test equipment, likewise forecast a surge in Q4 revenue far above estimates [28]. (TS2.Tech summed it up: the AI chip boom is “reverberating across the semiconductor supply chain,” benefitting companies like Teradyne [29].)
Other test-equipment firms had more muted moves. Advantest (Japan) and Keysight Technologies reported steady growth on memory and 5G/automotive test demand, but their stocks only ticked up modestly on earnings (these companies are more exposed to cyclical dips). Cohu, Inc. (COHU), which also makes probe cards and wafer handlers, posted a small Q3 loss on mix issues [30], and its share price has been relatively flat. In short, FormFactor’s ~24% one-day gain was among the largest in the chip-equipment space this week, highlighting how its results and outlook (especially for next-gen memory) were viewed as exceptional.
Forward Outlook and Market Sentiment
Looking ahead, experts note both the opportunities and caveats. On the positive side, FormFactor is positioned to ride megatrends in AI and advanced memory. As Citi pointed out, demand for high-bandwidth memory (HBM) and AI-capable chips is driving new testing requirements [31]. These markets are expected to grow sharply in 2026 and beyond, which could sustain FormFactor’s revenue ramp. Indeed, the company’s comments about accelerating AI-chip production suggest a runway for continued growth.
However, some analysts urge caution. The recent rally has pushed FormFactor’s valuation to rich levels (prior to the move P/E was already in the 80s). If broader chip spending slows or if execution falters, the stock could retreat. TS2’s coverage of Teradyne noted that “the 20%+ jump may invite profit-taking” and that the stock’s valuation is now “stretched” by historical standards [32]. Similarly, FormFactor faces general market risks such as semiconductor cycle volatility and supply-chain pressures. The consensus view (with average targets in the $40s [33]) implies only modest upside from here unless the company continues to outpace expectations.
In summary, FormFactor’s October 30 rally reflects genuine strength in its Q3 report and very optimistic Q4 guidance [34] [35]. Many analysts remain bullish on its niche in testing AI-memory chips [36], raising price targets accordingly. But investors should balance that enthusiasm against the possibility of near-term volatility, since the stock is now trading at new highs and some skepticism remains. The forward-looking view is cautiously optimistic: if AI-driven chip demand stays hot, FormFactor could extend its gains; otherwise, a pullback could occur before long.
Sources: Company filings and earnings call transcripts, market data and analysis from financial news sites (e.g. TS2.Tech [37] [38], StockStory [39], ChartMill [40], TipRanks [41], etc.), and peer Q3 reports for industry context. These sources provide the data and expert commentary cited above.
References
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