On June 25, FormFactor rose 6.77% in pre-market trading to $151.0 per share, with turnover of $41,000.

On the news front, the company announced it will be officially added to the US large-cap Russell 1000 Index effective June 29 as part of the annual Russell indexes reconstitution. This inclusion means passive funds tracking the index will be required to allocate shares, potentially driving incremental capital inflows. Additionally, B.Riley upgraded FormFactor from Neutral to Buy while maintaining a $165 price target, and Evercore ISI raised its rating to Outperform with a $155 target. FactSet data shows the consensus analyst rating stands at Overweight with an average target of $154.75.

The upgrades are supported by strong fundamentals, as the company reported Q1 revenue of $230 million with gross margin expanding 5.1 percentage points sequentially to 49.0%, and raised its Q2 guidance. The confluence of index inclusion, multiple rating upgrades, and improving earnings trajectory is driving the pre-market strength, with the broader semiconductor equipment sector also trading higher — Applied Materials up 6.79%, Lam Research up 6.59%, and KLA-Tencor up 5.29%.

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