FORM's HBM and Foundry Testing Gain From AI Demand: What's Ahead?

FormFactor Inc.FORM is benefiting from rising demand for high-bandwidth memory (HBM) and advanced semiconductor testing as artificial intelligence (AI) infrastructure expands. Increasing test complexity across memory, data-center CPUs, GPUs and custom application-specific integrated circuits is supporting growth in its Probe Cards business.

Broader exposure to foundry and logic applications is also expanding the company's growth opportunities beyond memory. FormFactor's DRAM revenues reached $84.9 million in the third quarter of 2026, up 24.5% year over year from $68.2 million. The results indicate continued strength in advanced memory testing, although DRAM revenue growth moderated from the previous quarter's record level.

Demand for advanced memory testing remains an important growth driver as HBM and other memory technologies require increasingly sophisticated testing capabilities. However, FormFactor's third-quarter financial disclosures do not specify HBM's share of DRAM sales or provide an update on SmartMatrix adoption and HBM4 testing activity.

FormFactor's Foundry & Logic business continued to gain momentum, with revenues increasing 44.2% year over year to $134 million in the third quarter of 2026 compared with $92.9 million in the year-ago quarter. Sequentially, revenues rose 10% from $121.8 million in the second quarter. Foundry & Logic remained the largest contributor to the Probe Cards segment, which generated $221.1 million in third-quarter revenues, up from $209.7 million in the preceding quarter.

These results highlight the growing contribution of advanced semiconductor testing to FormFactor's business, although the third-quarter supplemental financial information does not break out the specific end-market drivers of Foundry & Logic growth. The company's fourth-quarter 2026 outlook points to continued broad-based demand strength, with total revenues projected at $285 million.

How Competitors Fare Against FORM

FORM competes with TeradyneTER in automated test equipment and KLA CorporationKLAC in semiconductor inspection/process control and wafer fabrication. KLA remains positioned to outperform as AI infrastructure spending broadens demand for process control across leading-edge logic, memory and advanced packaging.

Rising chip complexity, larger die sizes and tighter defect requirements should increase inspection and metrology intensity. Teradyne is entering a multiyear growth phase as AI investment expands test needs across compute, memory, networking, storage, power and data center systems. Rising wafer capacity, transistor growth and advanced packaging are TER's major growth drivers.