Small-Cap Stock Formfactor Is Surging On A.I. Demand

(MENAFN- Yolo Wire) FormFactor (NASDAQ: $FORM) is a little known small-cap stock whose share price is surging due to artificial intelligence (A.I.) demand.

Based in California, FormFactor is a specialized semiconductor company. Specifically, It provides semiconductor companies with products to improve device performance.

FormFactor also helps semiconductor companies test and measure technologies for integrated circuits.

As one would expect, business is booming, sending FORM stock into the stratosphere as a result.

In the last 12 months, FORM stock has risen an astounding 505%, including a 156% increase so far in 2026.

The stock has run circles around much larger semiconductor companies that are also supposed to be benefiting from the A.I. buildout.

FormFactor's stock has even outperformed Nvidia (NASDAQ: $NVDA), whose share price has gained 109% over the last year.

A going concern since 1993, FormFactor has been publicly traded since 2003. The share price has enjoyed its biggest gains ever over the past year as investors flock to the A.I. trade.

The big run higher in the share price has pushed FormFactor's market capitalization to just over $11 billion U.S. and given the stock a sky-high valuation.

Currently, FORM stock is trading at 216 times this year's earnings estimates, which is at nosebleed levels. There's also no dividend on offer from the company.

Still, FORM stock could have more runway ahead as investors search for ways to play the infrastructure needed to power the A.I. revolution.

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