Do Board Changes and Insider Sales Reframe FormFactor’s (FORM) AI Chip Testing Ambitions?

• In February 2026, FormFactor announced that director Kevin Brewer will retire from the Board after his current term and will not stand for re-election at the anticipated May 15, 2026 annual meeting, following his tenure on the Audit and Governance and Nominating Committees and a February open-market sale of 3,000 shares.
• His planned departure, alongside share sales by several directors and executives, comes as FormFactor highlights its role in AI-driven semiconductor testing at industry events such as the Chiplet Summit 2026, drawing attention to how board composition interacts with the company’s positioning in complex chip markets.
• With Kevin Brewer’s planned retirement and recent insider sales in focus, we’ll assess how these governance changes influence FormFactor’s investment narrative.

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FormFactor Investment Narrative Recap

To own FormFactor, you need to be comfortable with a business tied closely to semiconductor test demand, particularly in complex AI, DRAM and HBM markets. The key near term catalyst remains execution on higher margin, advanced packaging and AI related test, while the biggest risk is ongoing margin pressure from mix, costs and tariffs. Kevin Brewer’s planned board retirement and recent insider sales do not appear to materially change these core drivers in the short term.

The most relevant recent announcement here is FormFactor’s Q4 2025 and full year 2025 results, which showed higher quarterly revenue but softer full year net income margins. Against this backdrop, Brewer’s departure from the Audit and Governance and Nominating Committees puts a bit more focus on how the board will oversee capital allocation, cost discipline and the large Texas expansion as the company pursues its AI and chiplet testing ambitions.

However, against the excitement around AI test and Texas expansion, investors should be aware that prolonged gross margin pressure could still...

Read the full narrative on FormFactor (it's free!)

FormFactor's narrative projects $984.3 million revenue and $97.0 million earnings by 2028.

Uncover how FormFactor's forecasts yield a $67.88 fair value, a 28% downside to its current price.

Exploring Other Perspectives

By contrast, the most bearish analysts were assuming revenue of about US$925.3 million and earnings of around US$91.3 million by 2028, reminding you that expectations can vary widely and that both these views and the impact of FormFactor’s recent board and insider activity may need to be revisited as new information comes through.

Explore 6 other fair value estimates on FormFactor - why the stock might be worth less than half the current price!

Form Your Own Verdict

Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

• A great starting point for your FormFactor research is our analysis highlighting 1 key reward and 1 important warning sign that could impact your investment decision.
• Our free FormFactor research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate FormFactor's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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