Shares of FormFactor jumped on Wednesday after Deutsche Bank lauded the maker of chip-testing equipment as a key supplier for Nvidia.

FormFactor stock rose 9.5% to $149.28, while the Nasdaq Composite index was up 1%. FormFactor shares have surged 167% this year, according to Dow Jones Market Data, and are up 285% over the past 12 months.

Deutsche Bank initiated coverage of FormFactor stock with a Buy rating. Analyst George Brown wrote that the company has "cemented itself" as the second source of chip-testing equipment for Nvidia's graphics processing units, which are made by Taiwan Semiconductor Manufacturing.

Deutsche Bank did not say which company ranked ahead of FormFactor. Goldman Sachs analysts wrote last year that rival Technoprobe has been a supplier of chip-testing technology to Nvidia.

Of the nine analysts polled by FactSet, four rate FormFactor a Buy, and four rate it a Hold.

The Nvidia relationship could expose FormFactor to a $500 million market, equivalent to the annual sales of its entire chip-testing equipment business, Brown said. FormFactor's sales to Nvidia were expected to start between July and December, enabling the company to capture up to 20% of the chip-testing market by 2028, adding $200 million in annual sales, the analyst wrote.

Brown said the company is "dominant" in the high-bandwidth memory testing business but could lose ground to Technoprobe. Brown nonetheless projects that FormFactor's sales of high-bandwidth memory testing equipment will grow to $400 million as the market expands.

Deutsche Bank estimates that FormFactor's earnings will hit $6.30 a share by fiscal 2028, about 25% above Wall Street's estimates of $5.03, according to FactSet.