What Happened?
Shares of semiconductor testing company FormFactor (NASDAQ: FORM) jumped 6.1% in the afternoon session after sentiment improved as peer, Aehr Test Systems, which provides similar semiconductor testing solutions announced it had received a $22 million follow-on production order from a major AI processor customer.
The announcement highlighted that the growing value and complexity of advanced AI chips, which often incorporate high-bandwidth memory (HBM), were increasing the need for thorough testing to find failures early. This development suggested a strong demand trend for the entire semiconductor testing industry, benefiting companies like FormFactor.
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What Is The Market Telling Us
FormFactor’s shares are extremely volatile and have had 64 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 13 days ago when the stock gained 25.6% on the news that the company reported second-quarter results that beat Wall Street's expectations on both the top and bottom lines and provided an upbeat outlook. The company posted adjusted earnings of $0.82 per share on revenue of $258.2 million, a 31.9% increase year-over-year. The strong performance pushed the company's annualized revenue run rate past the $1 billion mark. Looking ahead, FormFactor's midpoint guidance for the third quarter projects continued momentum, with adjusted earnings of approximately $0.86 per share on revenue of about $270 million, which was also well above consensus estimates.
FormFactor is up 119% since the beginning of the year, but at $129.57 per share, it is still trading 19% below its 52-week high of $159.93 from June 2026. Investors who bought $1,000 worth of FormFactor’s shares 5 years ago would now be looking at an investment worth $3,681.
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