What Happened?
Shares of semiconductor testing company FormFactor (NASDAQ: FORM) jumped 3.8% in the afternoon session after a better-than-expected inflation report for November sparked a broad market rally, lifting technology stocks.
The Consumer Price Index (CPI) came in below expectations, with a headline year-over-year inflation rate of +2.7%, which was lower than the anticipated +3.1%. This surprisingly tame data eased concerns about rising prices. The positive economic news prompted a wide range of assets to soar. Also helping the sector, Micron Technology reported stronger profit and revenue than analysts expected, which reaffirmed the health of the AI theme and further buoyed investor sentiment in related stocks.
After the initial pop the shares cooled down to $55.81, up 3.7% from previous close.
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What Is The Market Telling Us
FormFactor’s shares are extremely volatile and have had 33 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 24 days ago when the stock gained 3.8% on the news that renewed enthusiasm for Alphabet reinvigorated the artificial intelligence trade, propelling a market rebound heading into the Thanksgiving holiday.
The Nasdaq index jumped 2.6% and the S&P 500 gained 1.6%, driven by a 5% rally in Alphabet following the announcement of its upgraded Gemini 3 AI model. This optimism spilled over into the broader tech sector, lifting shares of Broadcom, Micron, and Palantir significantly. The rally built on momentum from the previous trading session, sparked by the New York Fed president keeping the door open for a December interest rate cut.
FormFactor is up 26.2% since the beginning of the year, and at $55.81 per share, it is trading close to its 52-week high of $59.25 from October 2025. Investors who bought $1,000 worth of FormFactor’s shares 5 years ago would now be looking at an investment worth $1,298.
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