Rambus’s Promising Growth: Strong Q1 Results and Strategic Expansion Drive Buy Rating

Analyst Aaron Rakers of Wells Fargo maintained a Buy rating on Rambus (RMBS – Research Report), retaining the price target of $73.00.

Aaron Rakers has given his Buy rating due to a combination of factors that highlight Rambus’s promising growth prospects. The company reported strong first-quarter results with a significant year-over-year increase in chipset revenue, which aligns with the positive outlook for data center memory expansion. The anticipated ramp-up of Power Management ICs (PMIC) in the second half of 2025 and the expansion of MR-DIMM content in 2026 are seen as key growth drivers.
Rakers also notes Rambus’s confidence in capturing a substantial market share in DDR5 solutions, with the PMIC ramp being a significant catalyst. Despite some uncertainties related to tariffs, the company does not foresee immediate impacts, maintaining a positive sentiment. The potential for a fourfold increase in MR-DIMM content further supports the bullish outlook, making Rambus an attractive investment opportunity.

RMBS’s price has also changed moderately for the past six months – from $44.800 to $52.220, which is a 16.56% increase.