← Quality Momentum
QM · rank #1 · 2026-05-18
FORM
NASDAQ · $9.84B
verdict · CAUTION
Why this pick · factor scores
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +444.70% |
| ROE TTM Return on equity, trailing 12 months. | +6.8% |
| Profit margin Net profit margin, trailing 12 months. | +8.1% |
| Market cap Size filter: > $500M required. | $9.84B |
| Anchor (recent) Close on 2026-04-17 | $137.21 |
| Anchor (far) Close on 2025-04-17 | $25.19 |
AI research card
Independent qualitative review before order placement.
Summary
FormFactor Inc. is a leading provider of essential test and measurement technologies, primarily probe cards, for the semiconductor industry across the full integrated circuit lifecycle.
Rationale
FORM's strong momentum_12_1 of 4.4470, combined with a positive ROE and profit margin, suggests a high-quality business experiencing significant upward price movement, likely driven by its critical role in advanced semiconductor testing for AI and HBM.
Material risks
- 1Customer concentration is a significant risk, with two customers (SK Hynix and NVIDIA) accounting for nearly 40% of Q1 2026 revenue, making FORM vulnerable to shifts in their demand or relationships.
- 2The semiconductor industry is cyclical, and FormFactor's heavy exposure to memory (DRAM/HBM) and AI could lead to revenue volatility if demand falters or the pace of AI infrastructure buildouts slows.
Verdict reasoning
While strong momentum and quality metrics are present, high customer concentration and industry cyclicality pose considerable risks.