NVIDIA bullish with new product line at CES, FormFactor bearish with disappointing Q4 results

From Nasdaq: 2025-03-18 10:01:00

Zacks Equity Research highlights NVIDIA (NVDA) as the Bull of the Day and FormFactor (FORM) as the Bear of the Day, with analysis on D-Wave Quantum Inc. (QBTS), Alphabet Inc. (GOOG), and Microsoft Corp. (MSFT). NVIDIA experienced a recent rally after a correction, unveiling a new product line called Project DIGITS at CES. The product, priced at $3,000, offers AI computing performance for prototype testing and running large AI models.

FormFactor, a $2.5 billion OEM, reported revenues of $763.6 million in 2024, with SK Hynix accounting for 22% of sales. Despite disappointing Q4 results, the company expects only 1.2% sales growth in 2025. The stock’s Zacks #5 Rank is due to a decline in EPS estimates and slow growth. FormFactor specializes in probe cards, analytical probes, probe stations, thermal sub-systems, and related services for the semiconductor industry.

D-Wave Quantum Inc. saw a 46.9% surge in shares after a recent rally, driven by positive forward guidance and partnerships. The company expects significant growth in sales and bookings due to developments in quantum computing. While the stock may appeal to risk-tolerant investors, caution is advised as practical applications of quantum computing are still emerging.

FormFactor’s Q1 guidance reflects a decline in demand in high-volume markets, affecting sales and earnings estimates. The company anticipates revenues of $170 million for Q1, below previous estimates, with a non-GAAP gross margin of 38%. The company’s performance is closely tied to the semiconductor industry’s demand, making it a key player in precision testing.

Investors looking for potential growth opportunities should consider the 5 stocks set to double, handpicked by Zacks experts. These stocks have shown significant gains in previous years, with the potential for substantial growth in 2025. Additionally, D-Wave stock has seen positive developments, with promising forward guidance and analyst recommendations. However, the stock remains speculative due to challenges in the quantum computing industry.



Read more at Nasdaq: NVIDIA and FormFactor have been highlighted as Zacks Bull and Bear of the Day