FormFactor
FORMMarket price data through August 28, 2026.
Performance
Aug 2021 – Aug 2026
Track record
How this pick has done since Benson first called it.
- Benson Return
- 0%
- How much this stock is up since Benson first picked it — measured from the price at the time of that first pick, not from today.
- First pick price
- ~$102
- Roughly what one share cost when Benson first picked this stock. This is the starting line for the Benson Return.
- Tracking since
- August 2026
- The month this stock first became a Benson pick.
- Tracking duration
- 0 months
- How long Benson has been tracking this pick.
About FormFactor
FormFactor makes the testing equipment that checks whether computer chips actually work before they get shipped. Think of them as the quality inspector at the end of the chip factory line, using devices called probe cards that press against thousands of tiny contact points on a chip all at once. Every major memory and processor maker needs this step, and the harder chips get to build, the more testing they need.
The case for and against
Both sides of the story, in plain English.
- Margin Machine
FormFactor just posted the best quarter in its history. Revenue reached 258 million dollars in the second quarter of 2026, up almost 32 percent from a year earlier. The bigger story is profit. Gross margin climbed from 37 percent to nearly 51 percent in twelve months, and earnings per share went from 12 cents to 71 cents. That is close to six times the profit on about one third more revenue.
- The AI Test Bottleneck
The chips powering AI are stacked taller and packed tighter every year, and every extra layer has to be tested. FormFactor's memory testing revenue grew 49 percent year over year to 85 million dollars last quarter, and its systems business grew 43 percent. The company also sits on roughly 263 million dollars in net cash with almost no debt, so it can keep investing through a slowdown instead of borrowing.
- Two Customers Carry It
Just two customers, SK hynix and Taiwan Semiconductor, made up more than 35 percent of revenue last quarter, and SK hynix alone was over 24 percent. If either one slows its orders or moves to another supplier, the damage arrives fast. Chip equipment demand also runs in cycles, and full year 2025 revenue grew less than 3 percent before this recent surge.
- Priced For Perfection
The stock trades near 43 times expected earnings, which means a lot of good news is already baked into the price. FormFactor is also spending between 140 and 170 million dollars this year building out a new Texas plant, and free cash flow already fell from about 83 million dollars in 2024 to under 14 million dollars in 2025. If the AI memory boom cools or that plant ramps late, the shares can fall a lot further than the profits do.
Other companies we track
How to read this page
This automated research summary uses Financial Modeling Prep market data through 2026-08-28. Model signals, scores, and risk labels can change and may be incomplete or wrong.
Want Benson to watch FORM for you?
Get the app to follow every Benson pick live — and let Benson do the research for you.
Download on the App Store
Download Android app