Micron Technology and FormFactor are key players in the semiconductor industry, each benefiting from the rising demand for AI, advanced packaging, and high-performance computing. Micron, a leader in memory and storage solutions, is well-positioned for long-term growth due to its focus on AI, data centers, and industrial IoT. Its strategic shift towards resilient sectors like automotive and enterprise IT has stabilized its revenue, with significant growth in its fiscal 2025 third-quarter revenues and EPS. Micron’s advancements in high-bandwidth memory (HBM) and its partnership with NVIDIA highlight its strong presence in the AI supply chain.
FormFactor, known for its advanced test and measurement technologies, is gaining from the demand for advanced packaging. Its growth is driven by innovations in probe cards for technologies like 5G. Despite a recovery in its financials, FormFactor faces challenges with profitability due to a lower-margin product mix and higher costs. Its gross margin has been impacted by tariffs and operational expenses.
Micron’s shares have surged this year, reflecting its strong growth trajectory, while FormFactor’s shares have declined. Micron’s leadership in DRAM, NAND, and HBM, along with its strategic investments, gives it a competitive edge. FormFactor’s technology and customer base are commendable, but its profitability concerns persist. Currently, Micron appears to be the more promising investment.
