Financial Data and Key Metrics Changes - The company reported revenue of $172.2 million for Q2, exceeding expectations, with a 43% year-over-year growth driven by strong DDR5 product performance [14][5] - Non-GAAP net income for the quarter was $67.1 million, reflecting robust operational efficiency [16] - Record cash from operations was $94 million, showcasing the company's strong cash generation capabilities [6][13] Business Line Data and Key Metrics Changes - The memory interface chip business experienced a 43% year-over-year growth, marking the fifth consecutive quarter of product revenue growth [5][6] - Product revenue reached $81.3 million, a 7% sequential increase [14] - Silicon IP revenue showed solid results, driven by demand for high-speed memory and interconnect IP, particularly in AI and data center applications [10][47] Market Data and Key Metrics Changes - The company anticipates continued growth in the data center market, driven by the increasing complexity of high-speed performance computing and AI workloads [10][11] - The MRDIMM chipset is expected to enter the market in 2026, with significant growth potential projected for that segment [54] - The client memory module chipset for AIPCs has been launched, expanding the company's reach into high-performance PCs [9] Company Strategy and Development Direction - The company is focused on advancing system memory bandwidth and capacity through innovative memory, connectivity, and power management solutions [11] - Continued investment in product development is aimed at capitalizing on secular growth trends in AI and high-performance computing [12] - The company is strategically positioned to benefit from the transition to DDR5 and the introduction of new products [5][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit sequential product revenue growth in Q3, supported by ongoing market share leadership [7][12] - The company remains vigilant regarding the dynamic economic environment and is prepared to adapt its strategies accordingly [17] - Management highlighted the importance of maintaining strong relationships with supply chain partners to support growth plans [33] Other Important Information - The company continues its stock repurchase program, reflecting its commitment to delivering value to shareholders [16][19] - The anticipated revenue for Q3 is projected to be between $172 million and $178 million, with non-GAAP earnings per share expected to range from $0.58 to $0.66 [18] Q&A Session Summary Question: What is the contribution from RCDs and the ramp of PMIC opportunity? - Management indicated strong growth in product revenue, with RCDs contributing positively and expectations for continued market share gains in DDR5 [21][22] Question: Visibility into PMIC sales into the PC market? - Management noted modest traction in PMIC products for high-end PCs, with expectations for contributions to become visible in 2026 [27][29] Question: Inventory levels and lead times? - Inventory levels decreased to about 120 days, with management confident in meeting customer demand through the end of the year [31][33] Question: Impact of the AI ASIC market on silicon IP demand? - The explosion of the AI market is increasing demand for high-speed connectivity and memory interfaces, positively impacting silicon IP sales [36][37] Question: Update on MRDIMM market opportunity? - MRDIMM is expected to enter the market in 2026, with significant growth potential projected, particularly in the data center segment [54][52] Question: Trade-off between ARM CPUs and x86? - Management remains agnostic to CPU types, viewing competition between ARM and x86 as beneficial for the rollout of higher-speed solutions [55][56]

Financial Data and Key Metrics Changes - Rambus has a buy rating with a target price of $80 for the next twelve months, indicating bullish sentiment due to its leadership in DRAMs, particularly in server DRAM module companionships [2] Business Line Data and Key Metrics Changes - The distinction between training and inference in AI systems is emphasized, with training requiring significant GPU resources and large datasets, while inference aims to be performed across various devices, including home PCs and phones [6][8][10] Market Data and Key Metrics Changes - The demand for memory capacity and bandwidth is increasing significantly, particularly for large language models (LLMs) and AI applications, necessitating a combination of HBM and DDR memory [20][46] Company Strategy and Development Direction - Rambus is focusing on enhancing memory solutions to support the growing needs of AI applications, including the introduction of MRDIMM technology to increase bandwidth without changing the DRAM itself [36][39] - The company is also exploring the integration of additional components like PMICs onto RDIMMs to improve power management and efficiency [78][83] Management's Comments on Operating Environment and Future Outlook - Management believes that advancements in hardware efficiency, such as those demonstrated by DeepSeek, will drive broader adoption of AI technologies and increase demand for memory solutions [61][66] - The industry is currently discussing the future of DDR6 and the potential for CXL technology, with expectations for increased adoption as standards evolve [49][56] Other Important Information - The MRDIMM technology is anticipated to launch in 2026, with expectations for high data rates and increased bandwidth capabilities [37][39] - The integration of PMICs into memory modules is seen as a strategic move to enhance performance and reliability in high-demand environments [82][85] Q&A Session Summary Question: What is the outlook for DDR6? - Discussions are ongoing about DDR6, with no set date for release, but historical trends suggest a launch could occur five to seven years after DDR5 [52][49] Question: How does Rambus view the CXL standard? - Rambus is actively participating in the CXL market, with expectations for broader adoption as the technology matures and use cases become clearer [56][58] Question: Will more components be integrated into RDIMMs? - While there are discussions about integrating additional components onto RDIMMs, no specific announcements have been made yet [93]

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.