Analysts Believe FormFactor (FORM) Is A Mid-Cap AI Stock That Could Go Much Higher

FormFactor Inc (NASDAQ:FORM) is one of the 12 Best Mid-Cap AI Stocks to Buy According to Analysts. The most recent analyst activity in FormFactor Inc (NASDAQ:FORM) comes from Evercore ISI’s Vedvati Shrotre, who assigned a $155 price target to the stock, suggesting 33% upside, consistent with the median analyst upside estimate. Prior to that, on May 12, Craig Ellis of B. Riley Securities revised his price target upward on FormFactor Inc (NASDAQ:FORM) shares from $145 to $165.

The main reason for Craig Ellis’ positive stance on the company is the guidance provided on the May 11 Investor’s Day presentation. Management outlined its 2030 financial targets, which included 55% non-GAAP margins, operating expenses at 23% of revenue, and a non-GAAP EPS of $5. The growth is expected to come from high-bandwidth memory applications, high-performance computing, advanced packaging, and co-packaged optics. Moreover, the Framers Branch expansion is likely to drive higher margins and help the company gain market share.

The Investor Day also prompted other analysts to revisit their financial models, with Craig-Hallum upgrading the stock to Buy from its prior Hold rating and maintaining a price target of $175. This is also the highest target on Wall Street, as per estimates from 10 different analysts.

FormFactor Inc (NASDAQ:FORM) primarily offers semiconductor testing equipment and operates through two segments: Probe Cards and Systems. The probe cards are used to test various semiconductor processors and systems-on-chip products. The Systems segment designs the hardware platforms that are used to test these semiconductor devices. The company is based in Livermore, Canada.

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