The Rambus Recovery Could Be for Real

Core Insights - Memory chips are essential in the semiconductor industry, particularly for artificial intelligence applications that require rapid data transmission and sharing [1] - Rambus has successfully focused on semiconductor technology, leading to increased sales and profits, with its stock reaching record highs [2] Company Performance - Rambus prioritizes products for data centers and AI, generating 75% of its revenue from AI-related chips and silicon intellectual property, resulting in a 28% average annual revenue growth from 2019 to 2024 [4] - The demand for Rambus' memory interface chips has surged, with memory chip revenue increasing by 42% annually over the past five years, driven by the significance of Rambus' dynamic random access memory (RDRAM) [5] Revenue Sources - In addition to product sales, Rambus has seen significant contributions from royalty revenue and contract sales, totaling $266 million in the first three quarters of 2025, surpassing product revenue [6] - Rambus has experienced a revenue and earnings surge after years of stagnation, largely due to heavy investments in data center hardware and the potential for future AI investments [7]