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 ...

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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]

Rambus (RMBS) came out with quarterly earnings of $0.50 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.43 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this memory chip designer would post earnings of $0.42 per share when it actually produced earnings of $0.46, delivering a surprise of 9.52%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Rambus, which belongs t ...

Core Viewpoint - Rambus Inc. is positioned to benefit from the growing demand for high-bandwidth memory (HBM) driven by artificial intelligence (AI) applications, although its current revenue growth has not yet reflected this potential [1][3][4]. Company Overview - Rambus Inc. is a chip designer that licenses its technology and architecture to semiconductor companies, similar to Arm Holdings [1]. - The company offers DDR4 and DDR5 memory interface modules, with DDR5 providing improved efficiency and lower power consumption compared to DDR4 [1]. - Rambus has a significant patent portfolio with over 2,700 patents and applications [1]. Financial Performance - For Q2 2024, Rambus reported an EPS of 33 cents and revenues of $132.10 million, which was below consensus estimates of $139 million [4]. - Product revenue increased by 13% sequentially but only grew 3% year-over-year, while royalty revenue surged 38% year-over-year to $56.4 million [4]. - The company ended the quarter with $432.9 million in cash and cash equivalents [4]. Future Outlook - Rambus expects license billings for Q3 2024 to be between $60 million and $66 million, indicating potential double-digit growth [5]. - The consensus estimates for Q3 2024 are an EPS of 52 cents and revenue of $147.67 million [5]. - Rambus announced the industry's first HBM4 Memory Controller IP to support next-gen AI workloads, which could enhance its revenue from licensing and royalties [6]. Market Position - Rambus's stock has a 12-month price forecast of $77.75, representing an 86.94% upside potential, with a high forecast of $85.00 [4][7]. - The stock trades at a forward P/E ratio of 29.2x, and four analysts have given it Buy ratings [7]. Client Relationships - Notable clients in the technology sector include NVIDIA, AMD, and Micron Technology, which are also leveraging Rambus's intellectual property [2][3].

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 ...