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Rambus
(NASDAQ:RMBS)
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Rating:74Outperform
Price Target:
$128.00
▲(0.84% Upside)
Action:Reiterated
Date:06/27/26
RMBS scores well on fundamentals—strong margins, robust free cash flow, and very low leverage are the biggest positives. However, the overall score is held back by weak technical momentum (trading below key moving averages with negative MACD) and a premium valuation (P/E ~53.9). The latest earnings call was supportive with positive Q2 guidance and product/IP momentum, but supply-chain constraints and 2027-dependent ramps add execution and timing risk.
Positive Factors
High Profitability
Sustained ultra-high gross and net margins reflect a licensing-led business mix and high-value silicon/security products. Durable margin structure supports reinvestment, cash returns and resilience across cycles, enabling consistent operating leverage as revenue scales.
Negative Factors
Back-end Supply Constraints
End-market demand can be supply-limited if external OSAT/back-end capacity is constrained. Chronic supplier tightness can cap product shipments, delay customer ramps and limit revenue realization from design wins despite strong demand, creating lasting execution risk.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability
Sustained ultra-high gross and net margins reflect a licensing-led business mix and high-value silicon/security products. Durable margin structure supports reinvestment, cash returns and resilience across cycles, enabling consistent operating leverage as revenue scales.
Read all positive factors
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.
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The Fly
The FlyRambus (RMBS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.41B
Dividend YieldN/A
Average Volume (3M)2.49M
Price to Earnings (P/E)53.9
Beta (1Y)2.22
Revenue Growth19.12%
EPS Growth10.38%
CountryUS
Employees712
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)2.13
Shares Outstanding108,136,970
10 Day Avg. Volume3,166,814
30 Day Avg. Volume2,487,783
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 Cap1.13
Enterprise Value/Revenue19.35
Enterprise Value/Gross Profit25.13
Enterprise Value/Ebitda43.88
Forecast
1Y Price Target
$146.40Price Target Upside15.34% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)2.97
Revenue Forecast (FY)$819.04M
Rambus Business Overview & Revenue Model
Company Description
Rambus Inc. is a global provider of semiconductor solutions, operating across key regions including the United States, Taiwan, South Korea, Japan, Europe, Canada, Singapore, and China. Their product portfolio encompasses advanced DDR memory interf...
How the Company Makes Money
Rambus primarily makes money through (1) intellectual property (IP) licensing and (2) product revenue, supplemented by (3) contract and services revenue.
1) IP licensing and royalties: Rambus develops patented technologies and design IP (such as ...
Rambus Earnings Call Summary
Earnings Call Date:Apr 27, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 03, 2026
Earnings Call Sentiment Positive
Overall the call was constructive: Rambus reported Q1 results in line with guidance, strong product revenue growth (+15% YoY), robust cash generation ($66.3M free cash flow) and meaningful IP/product portfolio expansion (HBM4E controller, SOCAMM2 chipset, security engine). Management provided confident Q2 guidance (revenue $192M–$198M, product +11% sequential at midpoint) and reiterated long-term opportunities in data center and AI. The primary negatives are persistent back-end supply constraints, timing uncertainties for MRDIMM and DDR Gen5 ramps (with bulk volumes expected in 2027), and limited near-term revenue contribution from new LPDDR SOCAMM2 solutions. Weighing strong financial performance, product/IP momentum and conservative but positive guidance against supply-chain and timing risks, the tone is more favorable than cautious.Positive Updates
Strong Cash Generation and Balance Sheet
Ended Q1 with $786M in cash, cash equivalents and marketable securities (up $24M from Q4 2025). Operating cash flow was $83M and free cash flow was $66.3M, supporting strategic inventory builds and capital allocation.
Negative Updates
Supply-Chain and Back-End Tightness
Management highlighted persistent back-end supply constraints and long lead times; the company expects tightness to continue into 2027 as back-end capacity is strained by rising data center demand and supplier shifts away from China.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Cash Generation and Balance Sheet
Ended Q1 with $786M in cash, cash equivalents and marketable securities (up $24M from Q4 2025). Operating cash flow was $83M and free cash flow was $66.3M, supporting strategic inventory builds and capital allocation.
Read all positive updates
Company Guidance
Rambus guided Q2 non‑GAAP revenue of $192–$198 million, with product revenue of $95–$101 million (an ~11% sequential increase at the midpoint), royalty revenue of $72–$78 million and licensing billings of $76–$82 million; they expect non‑GAAP total operating costs of roughly $110–$114 million, non‑GAAP operating income of $78–$88 million, about $7 million of interest income, non‑GAAP tax expense of $13.6–$15.2 million, approximately $14 million of capex, a diluted share count of ~110 million and Q2 non‑GAAP EPS of $0.65–$0.73. For context, Q1 actuals were revenue $180.2M (product $88M, up 15% YoY), royalty $69.6M, licensing billings $70.8M, cash & marketable securities $786M and free cash flow $66.3M, and management reiterated expectations for double‑digit product growth in Q2 and year‑over‑year revenue growth for 2026.Rambus Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
88
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 721.15M | 707.63M | 556.62M | 461.12M | 454.79M | 328.30M |
| Gross Profit | 555.52M | 537.56M | 419.91M | 318.78M | 314.02M | 229.87M |
| EBITDA | 318.07M | 314.14M | 239.27M | 241.09M | 41.17M | 78.27M |
| Net Income | 230.01M | 230.46M | 179.82M | 333.90M | -14.31M | 18.33M |
Balance Sheet | ||||||
| Total Assets | 1.53B | 1.53B | 1.34B | 1.26B | 1.01B | 1.23B |
| Cash, Cash Equivalents and Short-Term Investments | 786.14M | 761.83M | 481.80M | 425.84M | 313.23M | 485.61M |
| Total Debt | 23.40M | 43.65M | 30.15M | 30.71M | 44.48M | 198.78M |
| Total Liabilities | 139.91M | 165.12M | 222.44M | 220.13M | 233.30M | 370.25M |
| Stockholders Equity | 1.39B | 1.36B | 1.12B | 1.04B | 779.30M | 862.40M |
Cash Flow | ||||||
| Free Cash Flow | 335.21M | 333.18M | 199.90M | 172.55M | 209.91M | 195.43M |
| Operating Cash Flow | 365.81M | 360.02M | 230.60M | 195.79M | 230.39M | 209.22M |
| Investing Cash Flow | -300.05M | -223.11M | -56.72M | -57.40M | 151.98M | -115.66M |
| Financing Cash Flow | -63.91M | -54.41M | -167.99M | -169.62M | -362.94M | -114.21M |
Rambus Technical Analysis
Negative
126.93
Price Trends
135.33
Negative
116.43
Negative
108.32
Positive
Market Momentum
-3.73
Positive
37.10
Neutral
8.13
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RMBS, the sentiment is Negative. The current price of 126.93 is below the 20-day moving average (MA) of 142.58, below the 50-day MA of 135.33, and above the 200-day MA of 108.32, indicating a neutral trend. The MACD of -3.73 indicates Positive momentum. The RSI at 37.10 is Neutral, neither overbought nor oversold. The STOCH value of 8.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $19.01B | 952.37 | 2.79% | ― | 17.45% | -61.07% | |
74 Outperform | $12.41B | 53.86 | 17.44% | ― | 19.12% | 10.38% | |
72 Outperform | $28.17B | 155.77 | 13.19% | ― | 27.05% | ― | |
66 Neutral | $15.53B | 59.14 | 21.21% | ― | 21.32% | 19.06% | |
64 Neutral | $8.26B | 25.65 | 9.69% | ― | -1.09% | 515.86% | |
63 Neutral | $10.23B | 28.10 | 6.30% | 4.37% | 2.33% | -6.12% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
RMBS
Rambus
114.73
50.71
79.21%
LSCC
Lattice Semiconductor
138.76
89.77
183.24%
MTSI
MACOM Technology Solutions Holdings
369.18
225.89
157.65%
NVMI
Nova
488.58
213.38
77.54%
SWKS
Skyworks Solutions
68.00
-4.13
-5.73%
QRVO
Qorvo
93.88
8.97
10.56%
Rambus Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Rambus Shareholders Back Board, Highlight AI Governance Focus
Positive
Apr 24, 2026
At its April 23, 2026 annual meeting, Rambus reported that 91.9% of eligible shares were represented, and shareholders approved all proposals, including the election of four directors for terms expiring in 2028, ratification of KPMG LLP as indepen...
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.