FormFactor Stock Surges After Deutsche Bank Cites New Nvidia Supplier Role

Shares of FormFactor, Inc. (FORM) surged 8.5% in morning trading after Deutsche Bank initiated coverage on the semiconductor equipment maker with a Buy rating and a $200 price target. The bank's analysis highlights the company's expanding role in the supply chain for artificial intelligence hardware, representing a potential 47% upside from the previous session's close.

Analyst Cites Nvidia Opportunity

According to a note published by Deutsche Bank, a key driver for the bullish outlook is FormFactor's new status as the second qualified source of probe cards for Nvidia's graphics processing units (GPUs) manufactured at TSMC. This development unlocks a total addressable market estimated at $0.5 billion, a figure on par with the company's entire logic probe card revenue base for 2026, the bank stated.

Deutsche Bank projects that FormFactor could begin generating initial revenue from the Nvidia relationship in the second half of 2026. The bank's model anticipates the company capturing approximately 20% market share by 2028, which would translate to more than $0.2 billion in annual sales from this segment alone.

Broader Growth Drivers

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Beyond the Nvidia catalyst, the initiation note also pointed to FormFactor's commanding position in testing high bandwidth memory (HBM), a critical component in AI accelerators. Deutsche Bank forecasts the total addressable market for HBM testing to more than double by 2028, projecting that FormFactor's HBM-related sales could approach $0.4 billion by that year.

The positive outlook is supported by other signs of operational momentum, including an expected production capacity ramp at the company's Farmers Branch facility by year-end. The bank also noted that seven analysts have recently revised their earnings estimates upward, signaling strengthening fundamentals.

Market Reaction

The initiation prompted a sharp rally in FormFactor's stock, which climbed to a session high of $148.50. The move occurred amid a constructive market backdrop, with the Nasdaq Composite advancing 0.8% as pressure from rising Treasury yields appeared to ease. Investor enthusiasm for companies exposed to the AI infrastructure build-out continues to provide a tailwind for firms that supply critical testing equipment for advanced semiconductors.