FORM is a buy at $105: memory/HBM testing grew 32% y/y and 14% q/q, it is winning XPU test contracts, and 2026 CPO revenue is projected to exceed $20 million. It could benefit if the large XPU market grows and customers choose FormFactor; a forward P/E of 33 is not excessive, and he plans to buy more.

I no longer have a "FormFactor" in the field of memory. I was a former investor in Form. I sold it when it was in the fifties, and I mentioned it in my community, "What the Chip Happened".

Now, Form Factor is another option. FormFactor does not produce the memory itself , but it creates testing solutions for memory. In the last quarter, they achieved annual growth of approximately 32% and sequential growth of approximately 14% .

Again, it is not a chip manufacturing company , but it relies heavily on the memory sector.

More complex high-bandwidth memory (HBM) requires further testing. You need to test hundreds of complete memory heaps (HBMs). This is somewhat similar to their consumer goods, and the more complex the heaps of memory (HBM) are, the higher the bandwidth and greater technological innovation you need in those check cards.

Therefore , the company stated that it is getting new solutions and new victories, and the market is currently focused only on HBM memory, but it is expected to see more in the DRAM market in the next quarter as well.

The other side of this is winning many design contracts with major processor (XPU) manufacturers without factories. Therefore, central processing units (CPUs), graphics processing units ( GPUs), and custom processors require sensors to handle more stringent electronic requirements.

In the July 29 earnings call , they mentioned that they are getting multiple wins with an unnamed processor (XPU) manufacturer without factories.

Now, again , if the large XPU market continues to grow and they decide to deal with Form Factor, this is a company that could benefit from that space.

The other market they are also trying to increase is the optical packaging rate, which also needs some kind of new testing process . They are testing an approach here in May 2026.

In earnings on July 29, management projected that combined optics revenue (CPO) for 2026 would significantly exceed the $20 million mark. It's not crazy, but you see the opportunity here where early visual testing can identify flaws, and that's the crucial aspect of the matter.

In today's market, where you don't have enough memory, optical solutions, or advanced packaging to get all the AI chips you want, you need to do as much testing as possible to eliminate any flaws and get the highest possible productivity for your chips. This is where Form Factor comes in .

With regard to this fiscal year, we are now in the second half of it. Therefore, over the next five months of the year, this company's forward price-to-earnings ratio is at its upper limit of 33.

That doesn't seem crazy for a forward price-to-earnings ratio of less than six months, and again, the opportunity is there for them.

The stock is now trading at around $105. I love the stock at this price point , and it is a stock I no longer own. Fortunately, I sold it when it was at the $150 level. I plan to buy more of it over time.

If I had the opportunity to add more Form Factor to my main investment portfolio.