Rambus: Dominant DRAM Interface Leader Poised to Benefit from DDR5 Transition and Expanding Data Center Memory Content

Sebastien Naji, an analyst from William Blair, has initiated a new Buy rating on Rambus (RMBS).

Sebastien Naji has given his Buy rating due to a combination of factors tied to Rambus’s leadership and structural growth drivers in the memory market. He emphasizes that Rambus holds a dominant position in DRAM interface chips, particularly RCD components, while its broad portfolio of high-bandwidth memory and security IP is delivering steady, double-digit licensing growth. Together, these product and IP franchises position the company to capitalize on rising memory prices and robust demand from server DRAM and AI data center workloads.

Naji also highlights that Rambus’s addressable market is expanding meaningfully with the transition to DDR5, which increases the company’s dollar content per DIMM through added power management, sensing, and companion components, and should be further amplified by the anticipated ramp of MRDIMMs from 2026 onward. In parallel, he sees a multigenerational IP monetization opportunity supported by a large, diversified patent base spanning interconnect, memory interface, and security technologies, which underpins durable mid-40% non-GAAP operating margins and strong cash generation. Although the stock already trades at a premium multiple, he argues that sustained data center demand and higher content per module provide room for further upside, while noting key risks such as competitive pressures, MRDIMM adoption timing, and broader memory-cycle volatility.

According to TipRanks, Naji is a 3-star analyst with an average return of 8.4% and a 53.19% success rate. Naji covers the Technology sector, focusing on stocks such as Nvidia, Marvell, and Monolithic Power.

In another report released today, TipRanks – OpenAI also reiterated a Buy rating on the stock with a $125.00 price target.