$FORM is the kind of AI-adjacent name I'd rather study than the ones everyone's chasing.
$FORM is the kind of AI-adjacent name I'd rather study than the ones everyone's chasing. FormFactor makes the probe cards used to test AI processors and memory chips, and its constraint right now is its own factory space.
- Q3 revenue (reported October 28) rose 38.4% year over year to $280.5 million, up 8.6% sequentially. It was the fourth straight quarterly record, and the company said revenue, gross margin and EPS all beat the high end of its outlook. Its Q4 outlook is $285 million, plus or minus $10 million.
- Management says productivity gains at existing sites are moderating as the footprint nears its limits. On the October 28 call, it said the Farmers Branch, Texas site has qualified assembly and test and shipped its first production unit, with the ramp running through 2027.
- The company reported Systems revenue growth of more than 20% sequentially on co-packaged optics demand. Management now expects 2026 TRITON revenue above $30 million.
- The stock fell after the report, with coverage citing investor concerns about capacity and how long these margins last. It was at $90.74 premarket on November 3, up 3.94% from the $87.30 November 2 close.
Post-earnings drops on a good company are usually where I start paying attention, though the near-term growth rate depends on how fast Texas ramps. I could be wrong if that 2027 ramp slips, so the factory timeline is what I'd watch.
Source:
Seeking Alpha: https://seekingalpha.com/article/4961414-formfactor-its-new-factory-determines-the-growth-rate
Not financial advice. For informational and educational purposes only.
Hershey ($HSY): buy in pieces $156 to $170, long term
$HSY: I think Hershey is a buy because the margin recovery is already here and the stock has not priced it in. 11% below its 200-day About 19x the 2026 earnings guide 3.5% dividend yield I'm buying in pieces between $156 and $170 to hold for years.
Quote post: @zerohedge on stock pickers and quants both losing 3%+ in October
Goldman says stock pickers lost 3.5% and quants lost 3.6% in October. That's the first month in its data since…
Chip stocks bouncing into AMD's Q3 print looks like a relief rally that is mostly about one name, and I'm still skeptical on semis.
Chip stocks bouncing into AMD's Q3 print looks like a relief rally that is mostly about one name, and I'm still skeptical on semis. AMD is doing the lifting, and the rest of the group is fading. $AMD is at $493.10, up 5.63% from a $466.84…
Volcker Shock & the 1980s Bull — 20% Rates to 3.75%-4.00%
In June 1981, the Federal Reserve pushed the Fed Funds rate to 20% to break inflation running at 14.8%, the most aggressive tightening cycle in Fed…
In June 1981, the Federal Reserve pushed the Fed Funds rate to 20% to break inflation running at 14.8%, the most aggressive tightening cycle in Fed history. The market absorbed the full cost of it. The S&P 500 bottomed at 102.42 on August…