FormFactor (FORM +27.52%) stock is posting massive gains in Thursday's trading. The company's share price was up 26.6% as of noon ET. Meanwhile, the S&P 500 was up 1.1%, and the Nasdaq Composite had risen 2.3%.
FormFactor released its second-quarter report after yesterday's market close, and the company delivered better-than-expected sales, earnings, and forward guidance. The company's valuation is also rising thanks to a rebound in the artificial intelligence (AI) chip trade.
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FormFactor served up strong Q2 results and guidance
In the second quarter, FormFactor recorded non-GAAP (adjusted) earnings per share of $0.82 on revenue of $258.2 million. Adjusted earnings beat the average analyst estimate by $0.21 per share, and sales topped the average forecast by roughly $18 million. Earnings were up from $0.27 per share in the prior-year quarter, and revenue increased 31.9% year over year.
For the current quarter, FormFactor's midpoint targets call for adjusted earnings of roughly $0.86 per share on revenue of approximately $270 million. Prior to the earnings release, the average analyst estimate targeted adjusted earnings of $0.62 per share on sales of roughly $247.3 million.
NASDAQ: FORM
Key Data Points
Investors are flocking back to AI stocks today
After big valuation pullbacks yesterday, investors are buying back into companies with exposure to AI chip trends in Thursday's trading. As a provider of chip testing solutions, FormFactor has seen strong sales and earnings performance connected to rising demand for DRAM memory chips and other solutions. Recent comments from Samsung suggest that memory chips will remain supply constrained in 2028, and investors are responding to the forecast by buying up shares of companies that can benefit from high demand for memory chips.
