FormFactor, Inc. (FORM) Remains Optimistic About Future Probe Card Demand

We recently published 13 Best Semiconductor Equipment Stocks to Buy According to Hedge Funds. FormFactor, Inc. (NASDAQ:FORM) is one of the stocks Jim Cramer recently discussed.

FormFactor, Inc. (NASDAQ:FORM)’s products allow chip manufacturers to test their products for bugs, failure points, and temperature requirements. Its shares have gained 22% year-to-date, primarily on the back of a major 39% jump in late October.

The stock surged in October after FormFactor, Inc. (NASDAQ:FORM) third-quarter earnings report. The results saw the firm deliver solid performance across all metrics. Its $202 million in revenue, $0.33 in adjusted EPS, $210 million in midpoint fourth quarter guidance, and $0.35 in midpoint fourth quarter EPS guidance handily beat analyst estimates of $200 million, $0.25, 199 million, and $0.29.FormFactor, Inc. (FORM) Remains Optimistic About Future Probe Card Demand

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Apart from the earnings report, FormFactor, Inc. (NASDAQ:FORM) has been quiet on the news front. However, during the earnings call, management discussed several aspects of the firm’s performance, such as weakness in the CPU market. This weakness has also led to Intel struggling, and then rising after its latest earnings. Here is what FormFactor, Inc. (NASDAQ:FORM)’s management shared about the CPU segment during the call:

“Despite broader indications of the beginning of a PC recovery, we’re not experiencing significant growth in probe cards for CPU applications. We believe this is because the increased demand is being served by our customers’ existing legacy node designs, where they’re able to employ their existing probe card fleet. As a reminder, probe cards are a device-specific consumable. And as this customer ramps volume on their new designs on new leading-edge silicon nodes, we expect to see increased demand for probe cards and CPU applications.

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Disclosure: None. This article is originally published at Insider Monkey.

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