Rambus (RMBS)
NASDAQ:RMBS
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Rambus
(NASDAQ:RMBS)
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Rating:65Neutral
Price Target:
$99.00
▲(7.35% Upside)
Action:DowngradedDate:02/19/26
The score is primarily driven by strong profitability and balance-sheet strength, partially offset by the major red flag of 2025 cash-flow weakness versus earnings. Technicals are mixed with weakening near-term momentum, valuation looks expensive at a ~49 P/E, and the earnings call was constructive but tempered by near-term supply-chain-driven guidance uncertainty.
Positive Factors
Conservative Balance Sheet
Very low leverage (debt-to-equity ~3% in 2024–2025) and steady equity provide durable financial flexibility. A conservative balance sheet supports R&D and licensing enforcement, cushions semiconductor cyclicality, and enables opportunistic M&A or investment without stressing cash flows.
Negative Factors
2025 Cash-Flow Deterioration
A near-zero operating cash flow and ~99.9% free cash flow drop in 2025 weakens earnings quality. Such cash-conversion volatility suggests working-capital or one-off timing issues that can limit reinvestment, complicate forecasting, and strain the path from paper profits to sustainable cash generation.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Very low leverage (debt-to-equity ~3% in 2024–2025) and steady equity provide durable financial flexibility. A conservative balance sheet supports R&D and licensing enforcement, cushions semiconductor cyclicality, and enables opportunistic M&A or investment without stressing cash flows.
Read all positive factors
Rambus (RMBS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.94B
Dividend YieldN/A
Average Volume (3M)1.92M
Price to Earnings (P/E)43.0
Beta (1Y)2.04
Revenue Growth31.05%
EPS Growth30.35%
CountryUS
Employees712
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.68
Shares Outstanding107,790,730
10 Day Avg. Volume2,163,139
30 Day Avg. Volume1,923,600
Financial Highlights & Ratios
PEG Ratio1.53
Price to Book (P/B)7.26
Price to Sales (P/S)13.99
P/FCF Ratio29.72
Enterprise Value/Market Cap0.98
Enterprise Value/Revenue13.80
Enterprise Value/Gross Profit18.16
Enterprise Value/Ebitda31.08
Forecast
1Y Price Target
$113.50Price Target Upside23.08% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)2.96
Revenue Forecast (FY)$806.21M
Rambus Business Overview & Revenue Model
Company Description
Rambus Inc. provides semiconductor products in the United States, Taiwan, South Korea, Japan, Europe, Canada, Singapore, China, and internationally. The company offers DDR memory interface chips, including DDR5, DDR4 and DDR3 memory interface chip...
How the Company Makes Money
Rambus makes money primarily through (1) licensing its intellectual property and (2) selling certain product solutions, with additional revenue from related services.
1) IP licensing revenue (core model)
- License fees: Rambus licenses its patent...
Rambus Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue across different business segments, providing insight into which areas are driving growth and how diversified the company's income streams are.
Breaks down revenue across different business segments, providing insight into which areas are driving growth and how diversified the company's income streams are.
Data provided by:
The Fly
The FlyRambus Earnings Call Summary
Earnings Call Date:Feb 02, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 27, 2026
Earnings Call Sentiment Positive
The call conveyed strong financial performance and operational momentum—record product revenue, robust cash generation, sustained gross margins, and expanding market share in DDR5 RCDs—while acknowledging a contained supply-chain manufacturing issue that will depress near-term (Q1) product revenue and create temporary testing/capacity constraints. Management emphasized the issue is resolved, expects recovery and continued market outperformance in 2026, but also noted broader memory supply constraints and timing risks tied to platform rollouts.Positive Updates
Record Annual Product Revenue and Strong YoY Growth
Full-year product revenue reached $347.8M (reported as $348M), a new annual record and up 41% year-over-year.
Negative Updates
Q1 Product Revenue Impact from Supply Chain Issue
A one-time back-end manufacturing issue with a single OSAT led to quarantining and retesting of parts, producing a low double-digit million dollar headwind to Q1 product revenue and tighter Q1 supply/testing capacity.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Annual Product Revenue and Strong YoY Growth
Full-year product revenue reached $347.8M (reported as $348M), a new annual record and up 41% year-over-year.
Read all positive updates
Company Guidance
The company guided Q1 non‑GAAP revenue of $108 million to $172 million (noting product revenue will be hit by a one‑time supply‑chain issue that management estimates trimmed low double‑digit millions and expects to normalize with growth resuming in Q2), royalty revenue of $61 million to $67 million, and licensing billings of $66 million to $72 million; Q1 non‑GAAP total operating costs (including COGS) of $100 million to $104 million, non‑GAAP operating income of $68 million to $78 million, approximately $13 million of capex, ~$6 million of interest income, a 2026 pro forma tax rate of 16% with Q1 non‑GAAP tax expense of roughly $11.8 million to $13.4 million, a diluted share count of ~110 million, and non‑GAAP EPS of $0.56 to $0.64.Rambus Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
41
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 707.63M | 556.62M | 461.12M | 454.79M | 328.30M |
| Gross Profit | 537.56M | 419.91M | 318.78M | 314.02M | 229.87M |
| EBITDA | 314.14M | 239.27M | 241.09M | 41.17M | 78.27M |
| Net Income | 230.46M | 179.82M | 333.90M | -14.31M | 18.33M |
Balance Sheet | |||||
| Total Assets | 1.53B | 1.34B | 1.26B | 1.01B | 1.23B |
| Cash, Cash Equivalents and Short-Term Investments | 761.83M | 481.80M | 425.84M | 313.23M | 485.61M |
| Total Debt | 43.65M | 30.15M | 30.71M | 44.48M | 198.78M |
| Total Liabilities | 165.12M | 222.44M | 220.13M | 233.30M | 370.25M |
| Stockholders Equity | 1.36B | 1.12B | 1.04B | 779.30M | 862.40M |
Cash Flow | |||||
| Free Cash Flow | 333.18M | 199.90M | 172.55M | 209.91M | 195.43M |
| Operating Cash Flow | 360.02M | 230.60M | 195.79M | 230.39M | 209.22M |
| Investing Cash Flow | -223.11M | -56.72M | -57.40M | 151.98M | -115.66M |
| Financing Cash Flow | -54.41M | -167.99M | -169.62M | -362.94M | -114.21M |
Rambus Technical Analysis
Positive
92.22
Price Trends
98.62
Negative
98.19
Negative
90.44
Positive
Market Momentum
-1.98
Negative
49.25
Neutral
75.61
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RMBS, the sentiment is Positive. The current price of 92.22 is above the 20-day moving average (MA) of 91.22, below the 50-day MA of 98.62, and above the 200-day MA of 90.44, indicating a neutral trend. The MACD of -1.98 indicates Negative momentum. The RSI at 49.25 is Neutral, neither overbought nor oversold. The STOCH value of 75.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RMBS.
Rambus Risk Analysis
Rambus disclosed 46 risk factors in its most recent earnings report. Rambus reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Rambus Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $14.16B | 39.37 | 22.70% | ― | 39.37% | 40.87% | |
73 Outperform | $13.31B | 3,496.18 | 0.44% | ― | -12.03% | -80.99% | |
66 Neutral | $17.48B | 67.11 | 12.60% | ― | 32.58% | -173.04% | |
65 Neutral | $9.94B | 42.96 | 18.29% | ― | 31.05% | 30.35% | |
64 Neutral | $8.42B | 30.39 | 6.83% | 4.37% | -2.18% | -16.84% | |
64 Neutral | $7.36B | 12.18 | 9.71% | ― | -7.22% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
RMBS
Rambus
92.22
49.32
114.99%
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Rambus Corporate Events
Business Operations and StrategyExecutive/Board Changes
Rambus adds Victor Peng to board, strengthens leadership
Positive
Feb 12, 2026
On February 12, 2026, Rambus appointed veteran semiconductor executive Victor Peng as a Class II director and member of its Compensation and Human Resources Committee, expanding the board to eight members. Peng, a former AMD president and ex-CEO o...
Business Operations and StrategyExecutive/Board Changes
Rambus Announces CFO Transition and Interim Leadership Plan
Neutral
Feb 10, 2026
Rambus Inc., a premier chip and silicon IP provider for data center and AI infrastructure, develops technologies that address bandwidth, efficiency and security bottlenecks between memory and processing. With over thirty years in advanced semicond...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.