Why FormFactor Stock Is Skyrocketing Today
Key Points
FormFactor's Q2 report arrived with great sales and earnings and forward guidance.
Investors are also aggressively buying stocks with exposure to the AI memory chip trends.
- 10 stocks we like better than FormFactor ›
FormFactor (NASDAQ: FORM) stock is posting massive gains in Thursday's trading. The company's share price was up 26.6% as of noon ET. Meanwhile, the S&P 500 was up 1.1%, and the Nasdaq Composite had risen 2.3%.
FormFactor released its second-quarter report after yesterday's market close, and the company delivered better-than-expected sales, earnings, and forward guidance. The company's valuation is also rising thanks to a rebound in the artificial intelligence (AI) chip trade.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Image source: Getty Images.
FormFactor served up strong Q2 results and guidance
In the second quarter, FormFactor recorded non-GAAP (adjusted) earnings per share of $0.82 on revenue of $258.2 million. Adjusted earnings beat the average analyst estimate by $0.21 per share, and sales topped the average forecast by roughly $18 million. Earnings were up from $0.27 per share in the prior-year quarter, and revenue increased 31.9% year over year.
For the current quarter, FormFactor's midpoint targets call for adjusted earnings of roughly $0.86 per share on revenue of approximately $270 million. Prior to the earnings release, the average analyst estimate targeted adjusted earnings of $0.62 per share on sales of roughly $247.3 million.
Investors are flocking back to AI stocks today
After big valuation pullbacks yesterday, investors are buying back into companies with exposure to AI chip trends in Thursday's trading. As a provider of chip testing solutions, FormFactor has seen strong sales and earnings performance connected to rising demand for DRAM memory chips and other solutions. Recent comments from Samsung suggest that memory chips will remain supply constrained in 2028, and investors are responding to the forecast by buying up shares of companies that can benefit from high demand for memory chips.
Should you buy stock in FormFactor right now?
Before you buy stock in FormFactor, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and FormFactor wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,081!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,166,221!*
Now, it’s worth noting Stock Advisor’s total average return is 889% — a market-crushing outperformance compared to 203% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 30, 2026.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
