$FORM Pre-Earnings Thoughts

Gaetano · Gaetano · July 29, 2026 at 13:26 · ⏱ 2 min read  | Read on Substack ↗
Summary
FORM is a diversified test and measurement company benefiting from several high-growth datacenter sub-markets (HBM, GPUs, networking, advanced packaging). Despite a 50% drop from highs and a still-challenging valuation at ~$88, the author holds a small long position and sees potential upside from upcoming earnings and a strong 2030 revenue/EPS model, with second-half 2027 growth critical to the thesis.
  • •FORM's Q2 guide calls for $240M revenue, 49.5% gross margin, and $0.61 non-GAAP EPS, with Street consensus aligned.
  • •The stock fell from a peak of ~$160 to ~$87 (nearly 50% drop), which the author views as a healthier entry point.
  • •Investor day targets: $1.6B revenue, 55% gross margins, $5 non-GAAP EPS by 2030, implying ~18x P/E at the current price.
  • •Author sees the second half of 2027 growth as a key driver and expects Q3 guidance above $250M (sequential growth) to confirm the thesis.
Read time 2 min
Length 2,121 chars
Category finance
Ideas
Gaetano Substack author, Gaetano
The article notes FORM is exposed to 'advanced packaging' and 'HBM GPUs' — both rely heavily on TSMC's CoWoS and advanced node capacity. FORM's testing demand scales with TSMC's packaging volumes, so
The article notes FORM is exposed to 'advanced packaging' and 'HBM GPUs' — both rely heavily on TSMC's CoWoS and advanced node capacity. FORM's testing demand scales with TSMC's packaging volumes, so TSMC's capacity adds are a leading indicator for FORM's revenue growth. Risk: Geopolitical tensions or capex slowdown at TSMC could reduce the pace of packaging expansion, hitting FORM indirectly.
TSM
Gaetano Substack author, Gaetano
The article lists 'HBM' as a key market for FORM. HBM memory content per GPU is rising, and FORM supplies test equipment for HBM stacks. Micron (MU) is a major HBM producer; its HBM ramp directly driv
The article lists 'HBM' as a key market for FORM. HBM memory content per GPU is rising, and FORM supplies test equipment for HBM stacks. Micron (MU) is a major HBM producer; its HBM ramp directly drives demand for FORM's test solutions. Risk: HBM oversupply or a shift in memory technology could reduce test equipment intensity.
MU
Gaetano Substack author, Gaetano
Author has a small long position and is willing to increase it based on upcoming earnings, citing FORM's exposure to high-growth DC markets (HBM, GPUs, advanced packaging) and a long-term model projec
Author has a small long position and is willing to increase it based on upcoming earnings, citing FORM's exposure to high-growth DC markets (HBM, GPUs, advanced packaging) and a long-term model projecting $1.6B revenue and $5 EPS by 2030.
FORM MED
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This newsletter, published July 29, 2026, features Gaetano discussing TSM, MU, FORM. 3 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Gaetano  · Tickers: TSM, MU, FORM