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FORM vs TER
Which Stock Would AI Choose? FormFactor (FORM) vs. Teradyne (TER) Stock Comparison
Key Takeaways
- Tickeron AI Verdict: TER — Teradyne is currently favored for its larger scale, broader diversification, and stronger multi-quarter revenue momentum.
- Both companies sit at the center of the AI-driven semiconductor test cycle, but they occupy distinct niches: probe cards versus automated test equipment (ATE).
- FORM posted a fourth consecutive record quarter, yet near-term capacity constraints and a post-earnings pullback weigh on sentiment.
- TER grew revenue roughly 70% year over year with AI-related demand exceeding 60% of sales, spanning three business groups.
- Teradyne's recent $300 million investment in FormFactor deepens the partnership between the two companies rather than framing them strictly as rivals.
- For more detail, explore FORM Major News and FORM Today's Price Move, along with TER Major News and TER Today's Price Move.
- Discover curated AI-driven strategies on the Trending AI Robots page to see how automation is applied to thousands of tickers.
Introduction
FormFactor and Teradyne are two closely linked names in the semiconductor testing ecosystem, yet they serve different functions within it. FormFactor specializes in probe cards and optical probing technologies used to test chips during production, while Teradyne supplies the larger automated test equipment (ATE) systems and robotics that evaluate semiconductors and assembled electronics. With artificial intelligence (AI) driving a historic build-out of data centers and high-performance computing, both stocks have attracted intense investor interest. This comparison is relevant for traders and investors evaluating how two AI-adjacent, cyclical equipment suppliers differ in scale, growth trajectory, and risk — and which one currently presents the more consistent market positioning.
FORM Overview and Recent Performance
FormFactor (FORM) designs and manufactures probe cards, essential consumable test interfaces used to verify semiconductor wafers and advanced packages. The company has benefited from broad demand across foundry and logic chips, DRAM (dynamic random access memory), high-bandwidth memory (HBM), and emerging co-packaged optics (CPO) applications. In recent weeks, FormFactor reported its fourth consecutive quarterly revenue record, with sales rising roughly 38% year over year and non-GAAP earnings per share (EPS) more than tripling. Demand for its TRITON photonics testing systems has accelerated, prompting management to more than double its 2026 revenue outlook for that product line. Despite the strong fundamentals, shares pulled back after the report, as investors weighed capacity constraints at existing facilities and the non-recurring nature of certain margin benefits. The ramp of a new Texas manufacturing site is now central to the company's 2027 growth story.
TER Overview and Recent Performance
Teradyne (TER) is one of the world's leading automated test equipment (ATE) suppliers, with a portfolio spanning semiconductor test, product (system-level) test, and collaborative robotics. Its "wafer-to-data-center" strategy has positioned the company directly in the AI infrastructure build-out, with AI-driven demand representing more than 60% of total revenue in recent quarters. In its latest period, Teradyne reported revenue above $1.3 billion, up roughly 70% year over year, while non-GAAP EPS rose over 150%. All three business groups grew, with semiconductor test revenue exceeding $1 billion and robotics returning to profitability. Management guided to approximately $5.2 billion in full-year revenue and expressed confidence in continued growth into 2027. Shares nevertheless declined after the results, reflecting profit-taking after a substantial year-to-date advance and investor sensitivity to valuation.
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Head-to-Head Comparison
Although both companies serve semiconductor testing, their business models differ meaningfully. FormFactor is a consumables-led supplier of probe cards, generating revenue that tracks chip design changes and test intensity; its margin profile has expanded sharply, but growth is constrained by manufacturing capacity. Teradyne operates at a larger scale, selling capital-equipment systems and robotics with a broader total addressable market (TAM) and a more diversified revenue base across compute, memory, networking, and industrial automation. On growth momentum, Teradyne's roughly 70% revenue expansion outpaces FormFactor's near-40% pace, though both have delivered record results. Risk factors also differ: FormFactor faces near-term capacity bottlenecks and mix shifts between DDR5 and HBM, while Teradyne carries customer-concentration risk and rich valuation multiples. Market sentiment toward both has cooled slightly after post-earnings pullbacks, underscoring the high expectations already embedded in AI-linked equipment names.
Tickeron AI Verdict
Based on observable factors including trend consistency, diversification, scale, and catalyst breadth, Tickeron's AI would likely favor TER over FORM in the current environment. Teradyne's revenue growth is faster, its AI exposure spans three business groups, and its multi-quarter momentum appears more firmly established across compute, memory, and robotics. FormFactor's record results and improving margins are compelling, but near-term capacity constraints introduce greater uncertainty around the pace of continued expansion. The verdict is probabilistic rather than definitive: relative positioning can shift with quarterly results, capacity ramps, and changes in AI capital-spending trends. Teradyne currently presents the more consistent combination of growth, scale, and strategic breadth between the two.
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 disclaimer.
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 TER is a Hold.
FORM in upward trend: price may jump up because it broke its lower Bollinger Band on November 05, 2026
FORM may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 30 of 33 cases where FORM's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 90%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where FORM's RSI Oscillator exited the oversold zone, 17 of 25 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 68%.
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 45 of 57 cases where FORM's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 79%.
Following a +5.56% 3-day Advance, the price is estimated to grow further. Considering data from situations where FORM advanced for three days, in 243 of 308 cases, the price rose further within the following month. The odds of a continued upward trend are 79%.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 12, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on FORM as a result. In 73 of 90 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 81%.
The Moving Average Convergence Divergence Histogram (MACD) for FORM turned negative on October 12, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 50 similar instances when the indicator turned negative. In 41 of the 50 cases the stock turned lower in the days that followed. This puts the odds of success at 82%.
FORM moved below its 50-day moving average on October 14, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for FORM crossed bearishly below the 50-day moving average on October 22, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 14 of 19 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 74%.
The 50-day moving average for FORM moved below the 200-day moving average on November 06, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where FORM declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 70%.
The Aroon Indicator for FORM entered a downward trend on November 10, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 62 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 76, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is 65 (best 1 - 100 worst), indicating fairly steady price growth. FORM’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 67 (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 80 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (5.702) is normal, around the industry mean (5.670). P/E Ratio (54.811) is within average values for comparable stocks, (68.795). FORM's Projected Growth (PEG Ratio) (1.500) is slightly higher than the industry average of (0.801). Dividend Yield (0.000) settles around the average of (0.009) among similar stocks. P/S Ratio (9.200) is also within normal values, averaging (27.897).
The Tickeron Seasonality Score of 85 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is 88 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
TER sees its 50-day moving average cross bearishly below its 200-day moving average
The 50-day moving average for TER moved below the 200-day moving average on November 09, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 12, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on TER as a result. In 65 of 89 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 73%.
The Moving Average Convergence Divergence Histogram (MACD) for TER turned negative on October 12, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 49 similar instances when the indicator turned negative. In 37 of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at 76%.
TER moved below its 50-day moving average on October 13, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for TER crossed bearishly below the 50-day moving average on October 19, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 11 of 13 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 85%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TER declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 67%.
The Aroon Indicator for TER entered a downward trend on November 10, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where TER's RSI Oscillator exited the oversold zone, 20 of 24 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 83%.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 21 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +15.63% 3-day Advance, the price is estimated to grow further. Considering data from situations where TER advanced for three days, in 253 of 315 cases, the price rose further within the following month. The odds of a continued upward trend are 80%.
TER may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 28 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 65 (best 1 - 100 worst), indicating fairly steady price growth. TER’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 65 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 76, placing this stock slightly better than average.
The Tickeron Valuation Rating of 73 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (9.926) is normal, around the industry mean (5.670). P/E Ratio (29.811) is within average values for comparable stocks, (68.795). Projected Growth (PEG Ratio) (0.734) is also within normal values, averaging (0.801). Dividend Yield (0.002) settles around the average of (0.009) among similar stocks. P/S Ratio (12.077) is also within normal values, averaging (27.897).
The Tickeron Seasonality Score of 85 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is 92 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
FORM | TER | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 72 | 61 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 80 Overvalued | 73 Overvalued | |
PROFIT vs RISK RATING 1..100 | 62 | 65 | |
SMR RATING 1..100 | 67 | 28 | |
PRICE GROWTH RATING 1..100 | 65 | 65 | |
P/E GROWTH RATING 1..100 | 88 | 92 | |
SEASONALITY SCORE 1..100 | 85 | 85 |
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.
TER's Valuation (73) in the Electronic Production Equipment industry is in the same range as FORM (80). This means that TER’s stock grew similarly to FORM’s over the last 12 months.
FORM's Profit vs Risk Rating (62) in the Electronic Production Equipment industry is in the same range as TER (65). This means that FORM’s stock grew similarly to TER’s over the last 12 months.
TER's SMR Rating (28) in the Electronic Production Equipment industry is somewhat better than the same rating for FORM (67). This means that TER’s stock grew somewhat faster than FORM’s over the last 12 months.
TER's Price Growth Rating (65) in the Electronic Production Equipment industry is in the same range as FORM (65). This means that TER’s stock grew similarly to FORM’s over the last 12 months.
FORM's P/E Growth Rating (88) in the Electronic Production Equipment industry is in the same range as TER (92). This means that FORM’s stock grew similarly to TER’s over the last 12 months.
| FORM | TER | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 68% | 2 days ago 83% |
| Stochastic ODDS (%) | 2 days ago 79% | 2 days ago 83% |
| Momentum ODDS (%) | 2 days ago 81% | 2 days ago 73% |
| MACD ODDS (%) | 2 days ago 82% | 2 days ago 76% |
| TrendWeek ODDS (%) | 2 days ago 72% | 2 days ago 69% |
| TrendMonth ODDS (%) | 2 days ago 74% | 2 days ago 72% |
| Advances ODDS (%) | 2 days ago 79% | 3 days ago 80% |
| Declines ODDS (%) | 7 days ago 70% | 7 days ago 67% |
| BollingerBands ODDS (%) | 2 days ago 90% | 2 days ago 68% |
| Aroon ODDS (%) | 2 days ago 84% | 2 days ago 64% |
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 overvalued. 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 0 FA rating(s) are green while TER’s FA Score has 1 green FA rating(s).
- FORM’s FA Score: 0 green, 5 red.
- TER’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 4 TA indicator(s) are bullish while TER’s TA Score has 4 bullish TA indicator(s).
- FORM’s TA Score: 4 bullish, 7 bearish.
- TER’s TA Score: 4 bullish, 7 bearish.
Price Growth
FORM (@Electronic Production Equipment) experienced а -11.53% price change this week, while TER (@Electronic Production Equipment) price change was -8.89% for the same time period.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was +6.98%. For the same industry, the average monthly price growth was -17.32%, and the average quarterly price growth was -31.40%.
Reported Earning Dates
FORM is expected to report earnings on Feb 10, 2027.
TER is expected to report earnings on Jan 27, 2027.
Industries' Descriptions
@Electronic Production Equipment (+6.98% 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.
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TER and
Correlation & Price change
A.I.dvisor indicates that over the last year, TER has been closely correlated with LRCX. These tickers have moved in lockstep 81% of the time. This A.I.-generated data suggests there is a high statistical probability that if TER jumps, then LRCX could also see price increases.
| Ticker / NAME | Correlation To TER | 1D Price Change % | ||
|---|---|---|---|---|
| TER | 100% | -0.24% | ||
| LRCX - TER | 81% Closely correlated | +0.49% | ||
| ONTO - TER | 77% Closely correlated | +1.79% | ||
| FORM - TER | 77% Closely correlated | +0.50% | ||
| COHU - TER | 77% Closely correlated | +0.39% | ||
| AMAT - TER | 76% Closely correlated | +0.53% | ||
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