Shares of FormFactor (FORM) are surging 14.98% in Thursday's pre-market trading, following the company's impressive first-quarter 2025 financial results and optimistic second-quarter guidance. The semiconductor test equipment manufacturer's performance significantly exceeded analyst expectations, demonstrating resilience in a challenging market environment.

FormFactor reported adjusted earnings per share (EPS) of $0.23 for Q1, outperforming the analyst consensus estimate of $0.19 by 21.05%. This represents a substantial improvement from the $0.18 per share reported in the same period last year. Revenue for the quarter also surpassed expectations, reaching $171.36 million versus the analyst estimate of $169.98 million, translating to a 1.56% year-over-year increase.

Adding to the positive sentiment, FormFactor provided an upbeat outlook for the second quarter, forecasting revenue of $190 million, plus or minus $5 million. This guidance suggests continued growth and confidence in the company's near-term prospects. CEO Mike Slessor highlighted strong demand for high bandwidth memory (HBM) DRAM probe cards, driven by investments in generative AI. Additionally, the company's recent acquisition of FICT Limited is expected to enhance access to multilayer organic substrates crucial for advanced packaging.

Analysts have responded favorably to FormFactor's results, with B. Riley raising its price target on the stock to $32 from $26. The current average rating on FormFactor shares is "buy," reflecting growing investor confidence in the company's ability to navigate challenges in the semiconductor market. Despite facing headwinds from tariffs and geopolitical issues, FormFactor's strong performance and strategic positioning in key growth areas have clearly resonated with investors, driving the significant stock price increase.