FormFactor Inc (FORM.O): Broad AI Exposure Continues to Deliver; Maintain Buy

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FormFactor Inc (FORM.O): Broad AI Exposure Continues to Deliver; Maintain Buy

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29 Jul 2026 23:34:26 ET │ 13 pages

FormFactor Inc (FORM.O)

Broad AI Exposure Continues to Deliver; Maintain Buy

CITI'S TAKE

FORM delivered another strong beat-and-raise quarter, highlighting broad-

based AI-driven demand across HBM, F/L and CPO. DRAM demand remains

at elevated levels, with record HBM4 demand and sustained DDR strength Buy

in Q2, and Q3 is expected to be steady but shifting meaningfully towards Price (29 Jul 26 16:00) US$83.45

more DDR demand as customers dynamically shifting wafer starts to

Target price US$165.00maximize profitability. In F/L, demand strengthened on data-center CPU,

networking, and initial ASIC momentum, and is expected to grow Expected share price return 97.7%

sequentially in Q3 driven by incremental demand across end markets. Expected dividend yield 0.0%

FORM revised up the CPO revenue expectation again to reaching $20M by

Expected total return 97.7%Q3 noting increasing production volumes and FormFactor's leadership

position at Insertion 1. Gross margin is also making better-than-expected Market Cap US$6,505M

progress and is now at 51% baseline level excluding one-time items. We

revise our CY26/27 EPS estimates to $3.02/$4.03, and keep our TP at $165

on 41x forward P/E vs 46x prior on lower market multiple. Maintain Buy.

Price Performance

Keystone Microtech Partnership — Management described the Keystone (RIC: FORM.O, BB: FORM US)

partnership as a strategic move to strengthen its position within the Taiwan

ecosystem, including foundry customer and OSATs. The rationale includes adding

assembly capacity, improving local responsiveness, engineering support, and

customer engagement.