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FORM vs STM
Which Stock Would AI Choose? FormFactor, Inc. (FORM) vs. STMicroelectronics N.V. (STM) Stock Comparison
Key Takeaways
- Both FORM and STM have surged in recent market activity amid semiconductor demand driven by AI applications, with FORM posting stronger year-to-date gains of approximately 140% compared to STM's 92%.
- FORM, a leader in semiconductor testing equipment, benefits from high-bandwidth memory (HBM) and advanced chip testing needs, fueling its explosive one-year return exceeding 370%.
- STM, a diversified chipmaker, reported year-over-year revenue growth in its recent quarterly results despite an earnings miss, with positive outlook tied to AI data centers and new sensors.
- FORM trades at a market cap around $10-12 billion with a P/E ratio near 200, while larger STM at $44 billion has a higher P/E above 300, reflecting growth pricing in both.
- Analyst sentiment shows price target upgrades for both, but FORM faces upcoming earnings scrutiny amid its rapid ascent.
- Sector tailwinds from AI megatrends support relative outperformance, though FORM's niche focus offers higher momentum potential versus STM's broader exposure.
Introduction
This comparison examines FORM and STM, two semiconductor players riding the AI-driven wave in the tech sector. Investors tracking relative performance in chip-related stocks, particularly those exposed to high-performance computing and testing demands, may find value in understanding their business models, recent momentum, and market positioning. With both exhibiting strong gains amid broader industry recovery, this analysis highlights contrasts in growth trajectories, risk profiles, and catalysts for traders seeking opportunities in the current environment.
FORM Overview and Recent Performance
FormFactor, Inc. (FORM) specializes in probe cards, analytical probes, and systems for semiconductor testing, serving applications in systems-on-chip, memory, RF devices, and emerging quantum processors. In recent weeks, the stock has shown robust momentum, with year-to-date returns around 140% and one-year gains surpassing 370%, driven by surging demand for testing high-bandwidth memory (HBM) chips essential for AI accelerators. Recent market activity reflects optimism around increased test complexity and DRAM recovery, though shares experienced volatility ahead of quarterly earnings. Sentiment has been bolstered by AI chip production ramps, positioning FORM as a key enabler in the supply chain, despite elevated valuations with a P/E ratio near 200.
STM Overview and Recent Performance
STMicroelectronics N.V. (STM) designs and manufactures semiconductors including analog ICs (integrated circuits), MEMS (micro-electro-mechanical systems) sensors, power discretes, microcontrollers, and RF products for automotive, industrial, and personal electronics markets. Recent performance includes year-to-date advances of about 92% and one-year returns near 117%, supported by AI data center opportunities and analog recovery. The company's latest quarterly results showed year-over-year revenue growth to $3.1 billion, though earnings missed estimates, with gross margins at 33.8%; shares rose on upbeat guidance and new ultralow-power image sensors. Positive analyst updates highlight strategic deals and industrial chip demand, trading at a market cap over $44 billion and P/E above 300.
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Head-to-Head Comparison
FORM focuses on testing equipment, contrasting STM's emphasis on chip design and production, making FORM more leveraged to upstream AI testing volumes while STM benefits from downstream applications in autos and industrials. Growth drivers include shared AI tailwinds—HBM for FORM and data centers/sensors for STM—but FORM shows superior recent momentum with 38% monthly gains versus STM's 44%, amid higher beta exposure (1.79 vs. 1.68). Risk factors tilt toward FORM's niche dependency on capex cycles, while STM offers diversification; market sentiment favors both via upgrades, though FORM's smaller cap amplifies trade-offs in volatility versus stability.
Tickeron AI Verdict
Tickeron’s AI models currently lean toward FORM due to its consistent trend strength, outsized momentum in AI testing demand, and relative positioning amid semiconductor recovery, potentially offering higher probabilistic upside in the near term compared to STM's steadier but less explosive profile.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full Disclaimers and Limitations.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is FORM is a StrongBuy and STM is a Hold.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
FORM’s FA Score shows that 2 FA rating(s) are green whileSTM’s FA Score has 1 green FA rating(s).
- FORM’s FA Score: 2 green, 3 red.
- STM’s FA Score: 1 green, 4 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
FORM’s TA Score shows that 6 TA indicator(s) are bullish while STM’s TA Score has 2 bullish TA indicator(s).
- FORM’s TA Score: 6 bullish, 3 bearish.
- STM’s TA Score: 2 bullish, 5 bearish.
Price Growth
FORM (@Electronic Production Equipment) experienced а +19.29% price change this week, while STM (@Semiconductors) price change was +9.30% for the same time period.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was +17.31%. For the same industry, the average monthly price growth was +9.95%, and the average quarterly price growth was +135.39%.
The average weekly price growth across all stocks in the @Semiconductors industry was +4.34%. For the same industry, the average monthly price growth was +5.81%, and the average quarterly price growth was +92.59%.
Reported Earning Dates
FORM is expected to report earnings on Aug 05, 2026.
STM is expected to report earnings on Jul 23, 2026.
Industries' Descriptions
@Electronic Production Equipment (+17.31% weekly)The electronic production equipment industry makes equipment used to produce semiconductors. Such equipment includes wafer fabrication, plasma etching and photo-resist processing equipment. The industry also makes chemical vapor deposition processing systems and photomasks, which are high-purity quartz plates that contain patterns to define integrated circuits layouts. Applied Materials, Inc., Lam Research Corporation, and KLA-Tencor Corporation are examples of electronic production equipment manufacturing companies.
@Semiconductors (+4.34% weekly)The semiconductor industry manufacturers all chip-related products, including research and development. These chips are used in innumerable electronic devices, including computers, cell phones, smartphones, and GPSs. Intel Corporation, NVIDIA Corp., and Broadcomm are some of the prominent players in this industry. Semiconductor companies usually tend to do well during periods of healthy economic growth, thereby inducing further research and development in the industry – which in turn augurs well for productivity and growth in the economy. In the near future, demand for semiconductor products (and possibly innovation within the segment) should only expand further, with the proliferation of 5G, autonomous vehicles, IoT, and various AI-driven electronics set to herald a new, advanced chapter in the technology-driven world as we know it. With burgeoning prospects comes great competition. In 2015, SIA estimated that U.S. semiconductor industry ranks as the second most competitive U.S. industry out of 2882 U.S. industries designated manufacturers by the U.S. Census Bureau.
| FORM | STM | FORM / STM | |
| Capitalization | 10.9B | 69.7B | 16% |
| EBITDA | 128M | 2.32B | 6% |
| Gain YTD | 149.570 | 198.845 | 75% |
| P/E Ratio | 160.01 | 483.13 | 33% |
| Revenue | 840M | 12.4B | 7% |
| Total Cash | 303M | 4.57B | 7% |
| Total Debt | 31.9M | 2.78B | 1% |
FORM | STM | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 74 | 78 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 79 Overvalued | 91 Overvalued | |
PROFIT vs RISK RATING 1..100 | 15 | 41 | |
SMR RATING 1..100 | 82 | 91 | |
PRICE GROWTH RATING 1..100 | 35 | 34 | |
P/E GROWTH RATING 1..100 | 5 | 1 | |
SEASONALITY SCORE 1..100 | 14 | n/a |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
FORM's Valuation (79) in the Electronic Production Equipment industry is in the same range as STM (91) in the Semiconductors industry. This means that FORM’s stock grew similarly to STM’s over the last 12 months.
FORM's Profit vs Risk Rating (15) in the Electronic Production Equipment industry is in the same range as STM (41) in the Semiconductors industry. This means that FORM’s stock grew similarly to STM’s over the last 12 months.
FORM's SMR Rating (82) in the Electronic Production Equipment industry is in the same range as STM (91) in the Semiconductors industry. This means that FORM’s stock grew similarly to STM’s over the last 12 months.
STM's Price Growth Rating (34) in the Semiconductors industry is in the same range as FORM (35) in the Electronic Production Equipment industry. This means that STM’s stock grew similarly to FORM’s over the last 12 months.
STM's P/E Growth Rating (1) in the Semiconductors industry is in the same range as FORM (5) in the Electronic Production Equipment industry. This means that STM’s stock grew similarly to FORM’s over the last 12 months.
| FORM | STM | |
|---|---|---|
| RSI ODDS (%) | N/A | 3 days ago 63% |
| Stochastic ODDS (%) | 3 days ago 82% | 3 days ago 74% |
| Momentum ODDS (%) | 3 days ago 75% | N/A |
| MACD ODDS (%) | 3 days ago 77% | 3 days ago 77% |
| TrendWeek ODDS (%) | 3 days ago 79% | 3 days ago 72% |
| TrendMonth ODDS (%) | 3 days ago 81% | 3 days ago 71% |
| Advances ODDS (%) | 3 days ago 77% | 12 days ago 71% |
| Declines ODDS (%) | 5 days ago 68% | 5 days ago 70% |
| BollingerBands ODDS (%) | 3 days ago 90% | 3 days ago 59% |
| Aroon ODDS (%) | 3 days ago 80% | 3 days ago 61% |
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FORM and
Correlation & Price change
A.I.dvisor indicates that over the last year, FORM has been closely correlated with RMBS. These tickers have moved in lockstep 74% of the time. This A.I.-generated data suggests there is a high statistical probability that if FORM jumps, then RMBS could also see price increases.
| Ticker / NAME | Correlation To FORM | 1D Price Change % | ||
|---|---|---|---|---|
| FORM | 100% | +6.89% | ||
| RMBS - FORM | 74% Closely correlated | +1.45% | ||
| SLAB - FORM | 73% Closely correlated | +0.28% | ||
| ADI - FORM | 72% Closely correlated | +1.37% | ||
| ARM - FORM | 72% Closely correlated | +11.27% | ||
| QCOM - FORM | 72% Closely correlated | +4.32% | ||
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