FormFactor Q2 Review: If You Haven't Sold On The Way Down, Don't Sell On The Way Up
FormFactor, Inc. delivered a stellar Q2, with revenues up 32% y/y and profitability surging, driven by AI-related demand for HBM, DRAM, and Co-Packaged Optics. FORM's gross margins expanded sharply, with company-wide margins rising 1340bps y/y to 50.7%, and cash flow generation was robust as capex needs moderate. Management's Q3 guidance for revenue and EPS is well above consensus, supporting a strong relief rally and dispelling fears that AI-driven growth has peaked.