FormFactor (FORM) Stock Forecast & Price Target

FormFactor is well-positioned to benefit from the growth of AI packaging and the increasing demand for advanced wafer probe cards. Their strong market position and diversification into engineering-focused test and measurement systems make them a key player in the industry. With a solid financial performance in the last quarter, improved GM execution, and a new production facility set to ramp up in late 2026/early 2027, FormFactor is on track to achieve their $2.00 target EPS this year and a target model set to be unveiled in May. Risks to achieving this would include prolonged shifts in GM mix, a global health pandemic or recession, and aggressive competitor pricing, but with an expected rapid growth in demand and market share, the company's outlook remains positive.

FormFactor is currently facing challenges with its gross margin performance and consistency. This, coupled with the company's reliance on probe card sales for the majority of its revenue, raises concerns about its long-term sustainability. The recent imposition of tariffs also adds to the uncertainty and further supports the negative outlook.