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1. Company Snapshot

1.a. 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 chips to module manufacturers and OEMs; silicon IP comprising, interface and security IP solutions that move and protect data in advanced applications; and physical interface and digital controller IP to offer industry-leading, integrated memory and interconnect subsystems.


It also provides a portfolio of patents that covers memory architecture, high-speed serial links, and security products.The company markets its products and services through its direct sales force and distributors.Rambus Inc.


was incorporated in 1990 and is headquartered in San Jose, California.

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1.b. Last Insights on RMBS

Rambus Inc.'s recent performance has been driven by strong growth in DDR5 memory interface chip sales and its leadership in AI-related products. The company's diversified business model and resilience to tariffs have positioned it for multi-year expansion. Notably, Acadian Asset Management LLC increased its stake by 1,505.5%, while Alberta Investment Management Corp boosted its holdings by 6.0%. Despite a recent earnings miss, Rambus' innovation pipeline and robust balance sheet support its growth story, tied to next-gen MRDIMM technology and AI data center demand.

1.c. Company Highlights

2. Rambus' Q3 Earnings: A Strong Beat on Revenue and Strategic Progress

Rambus delivered a robust third quarter with revenue of $178.5 million, surpassing expectations, driven by a record product revenue of $93.3 million, which grew 15% sequentially and 41% year-over-year. The growth was primarily led by DDR5 products and new product contributions. Royalty revenue was $65.1 million, and licensing billings were $66.1 million. The company generated $88.4 million in cash from operations and ended the quarter with $673.3 million in cash, cash equivalents, and marketable securities. Earnings per share came in at $0.444, below the estimated $0.62.

Publication Date: Oct -28

📋 Highlights

Guidance and Outlook

The company expects revenue in the fourth quarter to be between $184 million and $190 million, with royalty revenue between $59 million and $65 million and licensing billings between $60 million and $66 million. Non-GAAP earnings per share are expected to be between $0.64 and $0.71. This guidance suggests continued growth momentum, driven by the company's strategic alignment to capitalize on growing opportunities in data center and AI.

Product Portfolio and Market Opportunities

Rambus' product portfolio, including silicon IP and chip solutions, is well-positioned to benefit from the increasing technical demands of data-intensive applications. The company has made significant progress in its MRDIMM development and believes it can achieve a similar market share as it has with DDR5 in the long run. The timing of this depends on the rollout of platforms from main partners on the CPU side, with volumes expected to ramp in late 2026 and 2027.

Valuation and Growth Prospects

With a P/E Ratio of 53.37 and an EV/EBITDA of 41.38, the market appears to be pricing in significant growth expectations. Analysts estimate next year's revenue growth at 14.7%, which may not be sufficient to justify the current valuation multiples. However, the company's strong position in the RCD market, with an estimated 40% to 50% share, and its potential to gain share as the DDR5 cycle continues, provide a positive outlook.

Margin Expansion and Cash Flow Generation

The company expects margins for MRDIMM to be comparable to product margins, with a long-term goal of 65% to 68%. The growth trend in the server market, expected to be in mid- to high single digits, with favorable tailwinds for Rambus' business going into 2026, should support margin expansion and cash flow generation.

3. NewsRoom

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Analyzing Rambus (NASDAQ:RMBS) & SkyWater Technology (NASDAQ:SKYT)

Dec -01

Source: defenseworld.net

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Invesco Small Cap Value Fund Q3 2025 Performance Review

Nov -20

Source: seekingalpha.com

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Rambus Stock To $111?

Nov -19

Source: forbes.com

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Alberta Investment Management Corp Raises Holdings in Rambus, Inc. $RMBS

Nov -17

Source: defenseworld.net

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Bank of Montreal Can Has $896,000 Stake in Rambus, Inc. $RMBS

Nov -16

Source: defenseworld.net

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Aviva PLC Trims Stock Position in Rambus, Inc. $RMBS

Nov -14

Source: defenseworld.net

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Acadian Asset Management LLC Boosts Stock Position in Rambus, Inc. $RMBS

Nov -14

Source: defenseworld.net

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Carillon Eagle Small Cap Growth Fund Q3 2025 Portfolio Update

Nov -13

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.20%)

6. Segments

Semiconductor Space

Expected Growth: 10.2%

Growing demand for high-performance computing, increasing adoption of AI and IoT devices, and rising need for secure data storage and transfer are driving the growth of Rambus' semiconductor IP market.

Royalties

Expected Growth: 10.2%

Growing demand for high-performance computing, increasing adoption of AI and IoT devices, and rising need for advanced semiconductor designs drive the growth of Rambus' royalties. The company's strong patent portfolio and licensing agreements with leading tech companies further support this growth.

Contract and Other

Expected Growth: 10.2%

Growing demand for patented innovations and increasing need for litigation support and patent brokerage services drive the Contract and Other segment's growth, fueled by the rising importance of intellectual property protection and the expanding technology industry.

7. Detailed Products

Rambus DDR5 PHY

A high-speed, low-power DDR5 PHY IP core that enables high-performance and low-power memory interfaces for data center, artificial intelligence, and machine learning applications.

Rambus HBM3 PHY

A high-bandwidth, low-latency HBM3 PHY IP core that enables high-performance and low-power memory interfaces for artificial intelligence, machine learning, and high-performance computing applications.

Rambus PCIe 5.0 Controller

A high-speed, low-power PCIe 5.0 controller IP core that enables high-performance and low-power peripheral interfaces for data center, artificial intelligence, and machine learning applications.

Rambus CryptoManager Root of Trust

A hardware-based root of trust that provides a secure foundation for cryptographic operations and secure boot mechanisms.

Rambus DPA Countermeasures

A set of countermeasures that protect cryptographic implementations against differential power analysis (DPA) attacks.

Rambus Secure Protocol Engines

A set of secure protocol engines that provide secure communication protocols for IoT, automotive, and industrial applications.

Rambus IP Cores

A portfolio of IP cores that provide high-performance and low-power interfaces for a wide range of applications.

8. Rambus Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Rambus Inc. has a diverse portfolio of patented innovations, making it difficult for substitutes to emerge.

Bargaining Power Of Customers

Rambus Inc. has a diverse customer base, but some customers have significant bargaining power due to their large volume of purchases.

Bargaining Power Of Suppliers

Rambus Inc. has a diverse supply chain, and no single supplier has significant bargaining power.

Threat Of New Entrants

The semiconductor industry is highly competitive, and new entrants can easily disrupt the market with innovative technologies.

Intensity Of Rivalry

The semiconductor industry is highly competitive, with many established players, leading to intense rivalry among companies.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 2.87%
Debt Cost 3.95%
Equity Weight 97.13%
Equity Cost 9.81%
WACC 9.64%
Leverage 2.96%

11. Quality Control: Rambus Inc. passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Rambus

A-Score: 5.1/10

Value: 0.8

Growth: 8.0

Quality: 9.0

Yield: 0.0

Momentum: 10.0

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Axcelis Technologies

A-Score: 4.7/10

Value: 4.4

Growth: 8.6

Quality: 7.9

Yield: 0.0

Momentum: 3.5

Volatility: 4.0

1-Year Total Return ->

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Teradyne

A-Score: 4.0/10

Value: 4.2

Growth: 4.4

Quality: 6.2

Yield: 0.0

Momentum: 6.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
MACOM Tech

A-Score: 3.9/10

Value: 2.2

Growth: 6.7

Quality: 3.5

Yield: 0.0

Momentum: 6.0

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Entegris

A-Score: 3.7/10

Value: 2.6

Growth: 6.6

Quality: 6.9

Yield: 0.0

Momentum: 3.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
FormFactor

A-Score: 2.6/10

Value: 0.6

Growth: 5.2

Quality: 5.4

Yield: 0.0

Momentum: 2.0

Volatility: 2.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

101.6$

Current Price

101.6$

Potential

-0.00%

Expected Cash-Flows