FORM - FormFactor: A Compelling Investment Opportunity In Advanced Semiconductor Testing
2024-07-30 07:08:03 ET
Summary
- FormFactor is experiencing strong growth in high-bandwidth memory (HBM) probe card demand, with HBM revenue nearly doubling in Q1 2024 compared to H2 2023.
- The company is benefiting from the increased adoption of advanced packaging technologies, which drives higher test intensity and complexity in semiconductor manufacturing.
- FormFactor's Q2 2024 guidance shows significant sequential growth, with expected revenue of $195 million ± $5 million and improved gross margins of 45% ± 150 basis points.
- The company believes it has gained market share across its served markets in 2023 and maintains a leadership position in key technologies like HBM testing.
- While risks exist, including industry cyclicality and customer concentration, FormFactor's strong market position and focus on operational improvements position it well for long-term growth in the semiconductor testing market.