Analyst Maintains Hold on Rambus, Keeps $120 Price Target Amid DRAM Shortage Risks and Slowing Product Growth

Robert W. Baird analyst Tristan Gerra downgraded the rating on Rambus to a Hold today, setting a price target of $120.00.

Tristan Gerra has given his Hold rating due to a combination of factors tied to Rambus’s exposure to memory supply dynamics and product growth visibility. While he acknowledges strong structural demand from x86 CPUs and agentic AI that increases DRAM content per server, he sees Rambus as a volume‑driven business that does not directly benefit from higher DRAM pricing when supply tightens.

He expects DRAM shortages to deepen as new capacity is absorbed by HBM, limiting RDIMM and MRDIMM unit growth into 2027 and constraining companion chip volumes as well. In parallel, his models point to slowing year‑over‑year product revenue comparisons versus last year, with only modest upside to current guidance, leading him to maintain a neutral stance and keep the price target unchanged at $120 despite recognizing Rambus as a high‑quality, higher‑risk small‑cap name.