Cantor Fitzgerald Initiates Coverage of FormFactor (FORM) Stock

Core Insights - FormFactor, Inc. is recognized as a leading investment opportunity in the quantum computing sector, with a recent "Overweight" rating and a price target of $75 from Cantor Fitzgerald analyst Matthew Prisco [1][2] Financial Performance - The company's stock has surged over 70% since September 2, 2025, reflecting strong market performance [2] - In Q3 2025, FormFactor reported revenues of $202.7 million, a 3.5% increase from Q2 2025, while gross margin improved to 39.8% from 37.3% in the previous quarter [2][4] - Year-over-year, Q3 2025 revenues declined by 2.5%, with probe card revenues falling by 3.4% [4] - The GAAP net income for Q3 2025 was $15.7 million, up from $9.1 million in the previous quarter, with operating expenses remaining stable at $62.6 million [4] Growth Drivers - The increase in stock price is attributed to strong exposure to High Bandwidth Memory (HBM), improved gross margins, and rising demand for advanced probe cards used in complex AI chips [1][2] - The company has implemented rapid gross margin improvement actions, resulting in a 250 basis points increase from Q2 2025, with expectations for continued improvement in Q4 2025 and beyond [3] Future Outlook - For Q4 2025, FormFactor anticipates revenues of approximately $210 million (+/- $5 million) and a gross margin of 42% (+/- 150 basis points) on a non-GAAP basis [5]