FormFactor (FORM) Stock Forecast & Price Target

FormFactor Inc. is poised for growth as management anticipates an upward trend in sales throughout the year, despite current softness in consumer-led markets. The company is notably optimistic about potential recoveries in probe card revenue, particularly driven by business with major customers, including a leading fabless microprocessor customer starting in early 2025 and additional demand from high bandwidth memory transitions. Furthermore, FormFactor's long-term prospects are strengthened by its diversification into engineering-focused test and measurement systems alongside its advanced wafer probe card business, indicating a potential recovery towards previous revenue levels.

FormFactor Inc. is facing a negative outlook due to a 9% sequential revenue decline in Q4 2024, driven primarily by a 23% drop in Foundry-Logic revenue and the company's loss of Intel as a major customer. The company's guidance for Q1 2025 suggests a further 10% sequential revenue decrease, reflecting continued challenges in the semiconductor market exacerbated by new China export controls and disappointing seasonality in its Systems segment. Additionally, declining margins, particularly in the Probe Cards Segment where engineering systems are expected to experience low growth, further contribute to concerns about FormFactor’s financial stability moving forward.