Rambus downgraded to Neutral from Outperform at Baird

Baird analyst Tristan Gerra downgraded Rambus (RMBS) to Neutral from Outperform with an unchanged price target of $120. The acceleration in x86 demand, driven by agentic AI, is positive for Rambus, the analyst tells investors in a research note. However, Baird sees the potential for a slowdown in registered dual inline memory modules growth next year due to increasing DRAM shortages. It expects these will persist throughout 2027. In addition, “rocketing” DRAM pricing may impact multiplexed rank dual inline memory module volumes as well, the analyst tells investors in a research note. The firm cites the “severe” memory shortages for the downgrade.