FormFactor shares jump on Deutsche Bank buy rating

FormFactor stock climbed 8.5% in morning trading on Wednesday after Deutsche Bank began coverage of the semiconductor test equipment company with a buy rating and a price target of $200. The target represents about 47% upside from Tuesday's closing price of $136.25.

Deutsche Bank's coverage focused on FormFactor's position as the second qualified supplier of probe cards for Nvidia graphics processing units made at TSMC. The bank said this development opens a total addressable market of about $0.5 billion, matching the company's entire logic probe card revenue base for 2026.

The bank expects initial revenue from the Nvidia relationship to start in the second half of 2026. FormFactor could capture around 20% market share by 2028, which would translate to sales above $0.2 billion, according to Deutsche Bank.

Deutsche Bank also pointed to FormFactor's position in high bandwidth memory testing. The firm expects the overall total addressable market to more than double by 2028 as the industry moves toward vertical MEMS probe technology for custom HBM applications. The bank projected HBM-related sales could reach $0.4 billion by 2028.

FormFactor's Farmers Branch manufacturing facility remains on schedule to increase production capacity by year-end. Seven analysts have recently raised their earnings estimates for the company heading into the third-quarter reporting cycle.

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