Group 1 - Michael Wiggins De Oliveira is an inflection investor, focusing on buying undervalued companies at pivotal moments when their profitability is expected to increase significantly over the next year [1] - The investment strategy emphasizes technology and the Great Energy Transition, including uranium, with a concentrated portfolio of approximately 15 to 20 stocks and an average holding period of 18 months [1] - Michael has over 10 years of experience analyzing companies in the tech and energy sectors, and has built a following of over 40,000 on Seeking Alpha [2] Group 2 - Michael leads the investing group Deep Value Returns, which offers insights through a concentrated portfolio of value stocks, timely updates on stock picks, and a weekly webinar for live advice [3] - The Deep Value Returns community is described as active, vibrant, and supportive, providing accessible chat options for both new and experienced investors [3]

Core Viewpoint - Rambus (RMBS) has faced a significant decline in its stock price, down 22.9% year to date, underperforming compared to the Zacks Electronics - Semiconductors industry, Zacks Computer and Technology sector, and the S&P 500 index [1] Group 1: Market Dynamics - The decline in Rambus' stock is attributed to reduced spending on traditional servers by enterprise customers, leading to a decrease in demand for its memory interface and security solutions [2][3] - The enterprise market is shifting towards artificial intelligence (AI) and machine learning workloads, which require specialized hardware, reducing capital allocation for traditional server setups [3] Group 2: Financial Performance - Rambus reported lower-than-expected revenues for the second and third quarters of 2024, which has further eroded investor confidence [4] - The Zacks Consensus Estimate for Rambus' 2024 top line is projected at $577.9 million, indicating a year-over-year growth of 3.5% [13] - The Zacks Consensus Estimate for 2024 earnings is pegged at $1.84, reflecting a year-over-year increase of 2.8% [13] Group 3: Strategic Initiatives - Rambus is focusing on high-performance memory products, such as DDR5 and high bandwidth memory (HBM), which are essential for AI data centers [7] - The company is introducing new products, including Client Clock driver chip, PCIe 7 IP solutions, and HBM4 controller chips, aimed at next-generation AI workloads, which are expected to drive long-term revenue growth [8] - Rambus is expanding its security portfolio to meet the needs of next-generation connected devices and cloud infrastructures, positioning itself for growth in data-driven industries [9] Group 4: Partnerships and Collaborations - Rambus has established partnerships with industry leaders like AMD, NVIDIA, and Cisco, which utilize its patented technologies and solutions [11][12] - These collaborations are anticipated to contribute positively to Rambus' top-line growth [13]

Core Points - Orchid Island Capital, Inc. declared a monthly cash dividend of $0.12 per share for November 2024, payable on December 30, 2024, to shareholders of record on November 29, 2024 [1] - The estimated book value per share as of November 8, 2024, is approximately $8.30 to $8.34, reflecting a decrease of 0.7% to 1.0% from the previous book value of $8.40 as of September 30, 2024 [2] - The company had 78,539,645 shares of common stock outstanding as of November 13, 2024, an increase from 78,082,645 shares as of September 30, 2024 [1][2] Dividend and Distribution - The company intends to make regular monthly cash distributions to its common stockholders, in compliance with REIT regulations requiring at least 90% of taxable income to be distributed annually [1] - The next dividend announcement is expected on December 10, 2024 [1] Financial Overview - As of November 8, 2024, the estimated total stockholders' equity is approximately $652.0 million to $655.0 million [2] - The company computes book value per share by dividing total stockholders' equity by the total number of outstanding shares [2] RMBS Portfolio Characteristics - The company invests in Agency RMBS, focusing on traditional pass-through Agency RMBS and structured Agency RMBS [4] - As of October 31, 2024, the total mortgage assets were valued at approximately $5.346 billion, with Fannie Mae and Freddie Mac assets comprising 67.9% and 32.1% of the portfolio, respectively [9][10] Borrowings and Hedging - Total borrowings as of October 31, 2024, amounted to approximately $5.125 billion, with a weighted average borrowing rate of 5.06% [11] - The company has various hedging strategies in place, including SOFR futures and swaps, to manage interest rate sensitivity [8]

Investment Rating - The report assigns a positive outlook for Rambus, indicating strong growth potential in the upcoming quarters [2][3]. Core Insights - Rambus reported Q3 2024 revenue of $145.5 million, a year-over-year increase of 38.2% and a quarter-over-quarter increase of 10.1%, driven by product and royalty revenue growth [5][6]. - The company launched several new products, including DDR5 series and HBM4 memory controllers, which are expected to contribute significantly to future revenue [12][15]. - The outlook for Q4 2024 includes projected revenue ranges for licensing and product sales, indicating continued growth momentum [7][17]. Summary by Sections 1. Performance Overview - Q3 2024 revenue was $145.5 million, with product revenue at $66.4 million (up 27% YoY), royalty revenue at $64.1 million (up 121.8% YoY), and contract revenue at $15 million (down 38% YoY) [5][6]. - Operating income was $54.6 million, with a margin of 38%, reflecting a decrease in profitability compared to the previous year [6][11]. 2. Performance Guidance - For Q4 2024, Rambus expects licensing revenue between $57 million and $63 million, product revenue between $72 million and $78 million, and total revenue between $154 million and $160 million [7][17]. 3. New Product Introduction - The DDR5 series products have received positive market feedback, contributing $66 million in revenue for Q3 2024, with expectations for continued growth in Q4 [12][13]. - The HBM4 memory controller is positioned to support AI applications and is part of Rambus's strategy to expand its product offerings in the silicon IP market [15][17]. 4. Balance Sheet - As of Q3 2024, Rambus had $432.7 million in cash and equivalents, with a free cash flow of $48.6 million [16][17]. 5. Company Outlook - Rambus anticipates continued growth driven by demand in data centers and AI workloads, with expectations for double-digit revenue growth in Q4 2024 [17][18].

Group 1 - The article initiates coverage on Rambus (NASDAQ: RMBS) with a BUY rating, emphasizing confidence in its top-tier products and relative discount to peers [1] - The positive outlook is supported by strong AI tailwinds and robust financials, indicating a favorable market position for Rambus [1] Group 2 - The analyst has no current stock or derivative positions in any mentioned companies and does not plan to initiate any within the next 72 hours [2] - The article reflects the author's personal opinions and is not influenced by compensation from any company mentioned [2]

Shares of Rambus (RMBS) have gained 23.7% over the past four weeks to close the last trading session at $49.89, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $68.67 indicates a potential upside of 37.6%.The mean estimate comprises three short-term price targets with a standard deviation of $15.18. While the lowest estimate of $55 indicates a 10.2% increase from the current pri ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________________ FORM 10-Q _______________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 000-22339 _______________________________ RAMBUS INC. (Exact na ...

Core Insights - The article emphasizes the importance of fundamental financial ratios and metrics in stock analysis, particularly in the tech sector, suggesting that simplicity in investment philosophy can yield clearer insights [1]. Group 1 - The analyst specializes in individual stock analysis with a strong educational background in finance and economics [1]. - There is a focus on market trends, especially within the technology sector, indicating a keen interest in identifying potential investment opportunities [1]. - The platform, Seeking Alpha, is highlighted as a valuable resource for connecting with a global community of investors and sharing ideas [1].

Core Viewpoint - Rambus is experiencing significant growth due to surging DRAM demand driven by artificial intelligence (AI) and recovering traditional server markets, leading to a positive outlook for the company [1][4]. Group 1: Financial Performance - Rambus reported a revenue increase of 38.2% to $145.5 million, with earnings per share (EPS) of $0.45, despite a year-over-year decline in EPS due to a prior year's divestiture gain [4]. - Management forecasts approximately $160 million in Q4 revenue, indicating a sequential growth of about 10% [5]. - The company holds $433 million in cash with no debt, representing about 8% of its market cap, and has engaged in stock repurchases amounting to $50 million in the last quarter [6]. Group 2: Market Position and Growth Potential - Rambus generates revenue through memory interface chips, royalty revenue from licensing patents, and contract services, making it well-positioned to benefit from the AI revolution [2][6]. - The company is first to market with advanced DDR5 MRDIMM 12800 and RDIMM 8000 modules, which could significantly expand its addressable market [5]. - Despite being less prominent than larger chip companies, Rambus is seen as a potential major beneficiary of the AI trend, with shares trading at about 25 times current run-rate EPS [6][7].

Financial Data and Key Metrics - Q3 revenue was $145.5 million, with product revenue at $66.4 million, up 17% sequentially and 27% YoY [24][25] - Royalty revenue was $64.1 million, while licensing billings were $65.4 million [24] - Non-GAAP net income for Q3 was $54.1 million, with a 22% assumed tax rate [26] - Cash from operations was $62.1 million, and free cash flow was $48.6 million [27] - Q4 revenue guidance is between $154 million and $160 million, with non-GAAP operating profit expected between $68 million and $78 million [29][30] Business Line Performance - Memory interface chips delivered $66 million in revenue, up 17% sequentially and 27% YoY, driven by DDR5 products [10] - Silicon IP revenue was relatively flat at $28 million to $29 million, with a shift toward off-the-shelf IP sales [33] - DDR5 RCD products gained market share, with early contributions from new products [10] - DDR4 sales remained modest at around $5 million per quarter [40] Market Performance - Data center demand growth in H2 2024 drove increased sales of DDR5 RCD products [10] - The server market is expected to grow mid-single digits in 2024, with Rambus gaining share [63] - DDR5 inventory levels are reasonable, while DDR4 inventory depletion continues [64] Strategy and Industry Competition - The company introduced industry-first DDR5 MRDIMM 12800 and RDIMM 8000 chipsets, expanding its addressable market [9][12] - Rambus is strategically focused on advancing system memory bandwidth and capacity through innovative memory, connectivity, and power management solutions [19] - The company aims to achieve similar market share in MRDIMM as it has in RCD, with MRDIMM expected to contribute significantly to SAM expansion [59][61] Management Commentary on Operating Environment and Future Outlook - Management expects double-digit product revenue growth in Q4 and over 30% growth in H2 compared to H1 [20] - The company is well-positioned to capitalize on secular trends in data center and AI, driven by DDR5 leadership and new product introductions [21] - AI and data-intensive workloads are accelerating the cadence of new product development [11] Other Important Information - The company repurchased $50 million of stock in Q3, marking the fifth consecutive quarter of share buybacks [8] - Q3 capital expenditures were $13.5 million, with depreciation expense of $6.7 million [27] - Q4 capital expenditures are expected to be approximately $11 million [29] Q&A Session Summary Kevin Cassidy (Rosenblatt Securities) - Asked about the shift in silicon IP revenue classification and received clarification on off-the-shelf vs. customized IP [33] - Inquired about HBM4 Controller IP payment timing, with Luc Seraphin confirming payment upon IP delivery [35] - Followed up on MRDIMM market share expectations, with Luc explaining its use cases and market potential [65] Blayne Curtis (Jefferies) - Asked about silicon IP growth and lumpiness in contract revenue, with Des confirming 10% growth expectations [38][39] - Inquired about DDR4 recovery, with Luc stating DDR4 sales remain modest, while DDR5 drives growth [40] Mehdi Hosseini (SIG) - Asked about the drivers of product revenue growth, with Luc attributing it to DDR5 market share gains and initial companionship sales [43][44] - Inquired about product gross margin trends, with Des confirming a long-term target of 60%-65% [47][48] - Followed up on HBM4 content and operating leverage, with Luc explaining HBM4 speed improvements and Des outlining R&D and SG&A expectations [67][69][70] Nam Kim (Arete Research) - Asked about CXL controller chip development and market sentiment, with Luc discussing fragmentation and future consolidation at CXL 3.0 [51][52] - Inquired about MRDIMM vs. MCR DIMM, with Luc emphasizing Rambus's focus on JEDEC standards [72][74][75] Gary Mobley (Loop Capital) - Asked about MRDIMM market evolution and Rambus's market share expectations, with Luc detailing the company's strategy and content per module [57][59][61] - Inquired about the impact of server market recovery on product revenue, with Luc confirming share gains and reasonable DDR5 inventory levels [62][63]