Rambus Inc. NASDAQ: RMBS is a chip designer and producer that licenses its technology and architecture to semiconductor companies. Like Arm Holdings Inc. NASDAQ: ARM, Rambus also licenses and collects royalties on the chips using their memory architecture and any of its over 2,700 patents and applications.Rambus TodayRMBSRambus$41.59 -0.04 (-0.10%) 52-Week Range$37.42▼$76.38P/E Ratio19.90Price Target$77.75Add to WatchlistRambus also offers DDR4 and DDR5 memory interface modules and chipset solutions. DDR5 h ...

October 2024 Monthly Dividend of $0.12 Per Share of Common Stock Estimated Book Value Per Share as of September 30, 2024 of $8.40 Estimated GAAP net income of $0.24 per share for the quarter ended September 30, 2024, including an estimated $0.29 per share of net realized and unrealized gains on RMBS and derivative instruments Estimated 2.1% total return on equity for the quarter ended September 30, 2024 Estimated book value, net income and total return on equity amounts are preliminary, subject to change, a ...

Rambus (RMBS) shares have plunged 27.4% over the past three months, underperforming the Zacks Electronics - Semiconductors industry's return of 8.4%. RMBS stock also underperformed the Zacks Computer and Technology sector and the S&P 500. The underperformance can mainly be attributed to its lower-than-expected top-line results for the third quarter of 2024. Rambus is facing a slowdown in revenue growth due to the broader enterprise market shifting its focus toward artificial intelligence (AI) and machine le ...

Rambus (RMBS) shares have plunged 32.2% over the past three months, underperforming the Zacks Electronics - Semiconductors industry's return of 2.6%. RMBS stock also underperformed the Zacks Computer and Technology sector and the S&P 500. Given this underperformance, investors are wondering whether this drop reflects underlying weaknesses, or is it a temporary pullback that offers a buying opportunity. Reason Behind RMBS Stock's Underperformance Rambus stock's underperformance was mainly due to its lower-th ...

Rambus (RMBS) shares rallied 10.8% in the last trading session to close at $42.47. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 12.7% loss over the past four weeks. The optimism surrounding the stock can be attributed to the rising adoption of Ramus' products. The company is rapidly expanding its portfolio with innovative product launches which helps in attracting more customers. Recently, it launched the ...

Rambus (RMBS) shares have plunged 42% year to date (YTD) against the Zacks Electronics - Semiconductors industry's growth of 13.6%. RMBS stock also underperformed the Zacks Computer and Technology Sector and the S&P 500's growth of 14.6% and 15%, respectively, in the YTD period. Rambus stock has declined significantly since its second-quarter 2024 results, wherein its revenues fell short of the analysts' expectations. Moreover, a massive decline in GAAP earnings per share also turned investors cautious abou ...

MoMo Productions/DigitalVision via Getty Images Investment Thesis New York Mortgage Trust (NASDAQ:NYMT) recently missed top-line and bottom-line estimates in the last quarter earnings, igniting a sell-off in the stock over the past trading week. I believe the stock is now trading at an attractive discount to adjusted book value, with strong liquidity to enhance the balance sheet in a potentially weakening economy. Management has shown to be strong capital allocators and excited for opportunistic growth oppo ...

Investment Rating - The report assigns a positive outlook for Rambus, indicating expectations for revenue growth in the upcoming quarters, particularly driven by strong product performance and market demand for DDR5 technology [2][12]. Core Insights - Rambus reported total revenue of $132.1 million for Q2 FY2024, a year-over-year increase of 10.3% from $119.8 million in the same quarter last year, primarily driven by strong demand in high-value memory products [5][17]. - The company experienced significant growth in operating profit, which reached $40.3 million, up 244.4% from $11.7 million in the previous year, resulting in an operating margin of 31% compared to 10% last year [5][17]. - Despite the overall revenue growth, net income decreased by 78.6% to $36.1 million from $168.9 million in the previous year, attributed to various factors including changes in revenue recognition [5][17]. Revenue Breakdown Product Revenue - Product revenue amounted to $56.7 million, a 3.1% increase year-over-year, driven mainly by DDR5 technology [8][17]. Royalty Revenue - Royalty revenue was $56.4 million, up 38.6% from $40.7 million in the previous year, with licensing fees at $61.5 million, reflecting a 2.2% increase [9][17]. Contract and Other Revenue - Contract and other revenue decreased by 21.2% to $1.9 million, primarily consisting of silicon IP, which is expected to grow due to increasing demand driven by AI applications [11][17]. Q3 FY2024 Guidance - Rambus anticipates Q3 FY2024 revenue to be between $144 million and $150 million, with royalty income projected between $59 million and $65 million, and licensing fees expected between $60 million and $66 million [12][17]. - Product revenue is expected to be between $62 million and $68 million, with a forecast of double-digit growth both sequentially and year-over-year [12][17]. Market Position and Future Outlook - Rambus is well-positioned in the DDR5 market, with ongoing developments in high-performance memory solutions and a strong focus on AI-driven applications [13][15]. - The company is expanding its market opportunities through strategic investments in innovative products, particularly in the areas of power management integrated circuits (PMICs) and silicon IP solutions [14][15].

Core Viewpoint - Rambus experienced a significant decline in stock price following a disappointing earnings report, with shares dropping nearly 29% over five trading days [1] Financial Performance - Rambus reported total revenue of over $132 million for Q2, which is a 10% increase year-over-year, but net income fell sharply to slightly over $36 million ($0.33 per share) from nearly $169 million in Q2 2023 [2] - Analysts had anticipated higher revenue of $139 million and a net income of $0.45 per share, indicating a double miss on estimates [3] Revenue Breakdown - The largest revenue stream, product revenue, increased slightly to $56.7 million from $55 million year-over-year [4] - Royalties surged by 39% to $56.4 million, while contract and other revenue declined to $19 million from slightly over $24 million [4] Guidance - Rambus provided guidance for Q3, projecting product revenue between $62 million to $68 million, licensing billings of $60 million to $66 million, and contract and other revenue of $17 million to $23 million, with operating costs expected to be between $93 million to $97 million [5] - No revenue or profitability guidance was provided in the earnings release [6]

I believe that Rambus' prospects are strong, even though this investment thesis is not blemish-free. Essentially, I discuss what I believe is a questionable use of capital, particularly given the overall macro environment. Ultimately, I believe that Rambus has compelling prospects, especially given its strong focus on being cash flow generative. Rambus (NASDAQ:RMBS) delivered a lackluster outlook that saw its share drop 10% premarket. RMBS Q2 2024 As noted in their earnings call, Rambus is seeing positive c ...