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    How Investors May Respond To FormFactor (FORM) Amid AI Optimism And Ongoing CEO Stock Sales

    Simply Wall St·12/22/2025 03:17:56
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    • In recent days, FormFactor, a semiconductor testing company, saw renewed investor interest after lower-than-expected November inflation data and upbeat Micron earnings improved sentiment toward AI-related chipmakers.
    • At the same time, SEC filings revealed that CEO Mike Slessor has consistently sold shares over the past year without any insider purchases, adding an extra layer for investors to weigh alongside the macro- and AI-driven optimism.
    • We’ll now explore how easing inflation and AI-fueled semiconductor enthusiasm interact with FormFactor’s existing investment narrative and future assumptions.

    Find companies with promising cash flow potential yet trading below their fair value.

    FormFactor Investment Narrative Recap

    To be a shareholder in FormFactor, you generally need to believe that AI, high bandwidth memory and advanced packaging will keep driving more complex semiconductor testing, supporting demand for its probe and systems portfolio. The recent CPI surprise and Micron’s AI-driven strength have lifted sentiment and may help near term orders, but they do not erase the key risk that margin pressure and higher operating costs could still weigh on profitability in the quarters ahead.

    Against this backdrop, FormFactor’s ongoing share repurchase program, including US$4.07 million of buybacks disclosed in November, is one of the more relevant developments, as it modestly offsets dilution while the AI and HBM test opportunity builds. However, these capital returns sit alongside weaker recent profit margins and a high earnings multiple, which leave little room for disappointment if AI-related test demand or cost efficiencies do not materialize as expected.

    Yet behind the AI excitement, investors should also be aware of how rising tariffs and U.S. China frictions could...

    Read the full narrative on FormFactor (it's free!)

    FormFactor's narrative projects $984.3 million revenue and $97.0 million earnings by 2028. This requires 8.8% yearly revenue growth and roughly a $53 million earnings increase from $43.9 million today.

    Uncover how FormFactor's forecasts yield a $56.88 fair value, in line with its current price.

    Exploring Other Perspectives

    FORM 1-Year Stock Price Chart
    FORM 1-Year Stock Price Chart

    Six fair value estimates from the Simply Wall St Community span roughly US$13 to US$78 per share, showing how far apart individual views can be. When you set those against the margin pressure and cost risks highlighted earlier, it underlines why many market participants are closely watching how FormFactor converts AI testing demand into sustainable profitability.

    Explore 6 other fair value estimates on FormFactor - why the stock might be worth as much as 37% more than the current price!

    Build Your Own FormFactor Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

    No Opportunity In FormFactor?

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.