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Rambus(RMBS) - 2025 FY - Earnings Call Transcript
2025-06-10 19:00
Rambus (RMBS) FY 2025 Conference June 10, 2025 02:00 PM ET Speaker0 Good afternoon, and welcome to Rosenblatt Security's fifth annual Age of AI scaling tech conference. My name is Kevin Cassidy. I'm one of the semiconductor analysts at Rosenblatt. And it's my my pleasure to introduce, Steven Wu. Steve is Rambus's fellow and distinguished inventor and is a technology innovator with over fifteen years of experience in the hardware and software performance solutions. We have a buy rating on Rambus and an $80 t ...
Rambus (RMBS) 2025 Conference Transcript
2025-06-05 16:42
Summary of Rambus Conference Call Company Overview - **Company**: Rambus - **Industry**: Semiconductors, specifically focusing on memory technologies and silicon IP Key Points Demand Environment - Rambus experienced strong demand in the server market, particularly for AI servers, leading to a 52% growth in product revenue compared to the same quarter last year [3][4] - The silicon IP business is also seeing increased demand as companies develop custom chips for AI applications [3] Market Size and Growth - The market for RCD (Register Clock Driver) chips is estimated at $750 million, with an additional $600 million from new companionship chips introduced in DDR5 memory modules [6][7] - The overall market is expanding due to increased bandwidth and capacity requirements driven by AI and traditional servers [9][10] Competitive Dynamics - Rambus holds a market share of over 40% in RCD chips, with a goal to reach 50% [12][14] - The company has invested early in product development, which has helped secure its position in the market [14] Product Development and Innovations - The transition from DDR4 to DDR5 has necessitated the development of new chips, including power management and temperature sensors, which Rambus is actively pursuing [37][39] - Rambus is also developing MRDIMM chipsets, which will double memory capacity and bandwidth, with a ramp expected in 2026 [42][44] Silicon IP Business - The silicon IP business is projected to grow at 10% to 15% annually, driven by demand for HBM (High Bandwidth Memory) controllers [54] - Rambus is engaged with customers 18 months to 2 years ahead of product launches, ensuring they meet market needs [51][53] Financial Outlook - Rambus aims for a long-term gross margin target of 60% to 65%, with recent performance in the range of 61% to 63% [56] - The company is focused on maintaining margins through disciplined pricing and cost savings [57] Tariffs and Market Risks - Rambus's patent licensing business is unaffected by tariffs, providing a solid revenue base of $210 million with 100% margin [29][30] - The company is monitoring potential indirect impacts from supply chain shifts due to tariffs but currently reports no direct effects [32][34] Future Opportunities - The company anticipates growth in the client market as high-end PCs increasingly require advanced signal integrity solutions [46][48] - Rambus is prepared to adapt to market changes, including potential developments in LPDDR solutions for servers [20][25] Additional Insights - The competitive landscape includes two main competitors, Montage and Renaissance, with Rambus focusing on securing supply chain stability [15] - The company is actively involved in industry standards discussions through JEDEC, ensuring alignment with market needs [27] This summary encapsulates the key insights from the Rambus conference call, highlighting the company's strategic positioning, market dynamics, and future growth opportunities.