Rambus(RMBS) - 2025 FY - Earnings Call Transcript

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]