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Rambus
(NASDAQ:RMBS)
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Rating:73Outperform
Price Target:
$112.00
▲(16.65% Upside)
Action:Reiterated
Date:08/05/26
RMBS scores well on financial strength (high margins, very low leverage, strong cash generation) and the latest earnings call supports continued near-term growth. These positives are tempered by weak technicals (price below major moving averages and negative MACD) and a relatively high P/E (~41) with no dividend yield support.
Positive Factors
Balance sheet strength
Extremely low leverage provides durable financial flexibility to fund R&D, strategic product ramps, and shareholder returns while withstanding cyclical semiconductor downturns. This reduces refinancing risk and supports multi-quarter investment and execution plans without stressing liquidity.
Negative Factors
Supply-chain tightness
Persistent component and substrate constraints through 2027 can cap shipments and delay customer ramps for both product and royalty realization. Prolonged supply friction may force inventory builds, slow revenue recognition, and delay anticipated design-win monetization across quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
Extremely low leverage provides durable financial flexibility to fund R&D, strategic product ramps, and shareholder returns while withstanding cyclical semiconductor downturns. This reduces refinancing risk and supports multi-quarter investment and execution plans without stressing liquidity.
Read all positive factors
Rambus Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue across different business segments, providing insight into which areas are driving growth and how diversified the company's income streams are.
Breaks down revenue across different business segments, providing insight into which areas are driving growth and how diversified the company's income streams are.
Data provided by:
The Fly
The FlyRambus (RMBS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.87B
Dividend YieldN/A
Average Volume (3M)3.31M
Price to Earnings (P/E)41.0
Beta (1Y)2.19
Revenue Growth17.17%
EPS Growth3.84%
CountryUS
Employees791
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)2.22
Shares Outstanding108,461,600
10 Day Avg. Volume2,695,387
30 Day Avg. Volume3,310,358
Financial Highlights & Ratios
PEG Ratio1.53
Price to Book (P/B)7.26
Price to Sales (P/S)13.99
P/FCF Ratio29.72
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$158.40Price Target Upside64.98% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)3.04
Revenue Forecast (FY)$825.66M
Rambus Business Overview & Revenue Model
Company Description
Rambus Inc. (RMBS) is a semiconductor IP and security technology company that develops and licenses technologies used in memory interfaces and controllers (e.g., DDR and related architectures), high-speed interconnect solutions, and hardware-based...
How the Company Makes Money
Rambus primarily makes money through (1) intellectual property (IP) licensing and (2) product revenue, supplemented by (3) contract and services revenue.
1) IP licensing and royalties: Rambus develops patented technologies and design IP (such as ...
Rambus Earnings Call Summary
Earnings Call Date:Jul 27, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 02, 2026
Earnings Call Sentiment Positive
The call was strongly positive: the company delivered record revenue and non-GAAP EPS, beat guidance, showed broad product and IP momentum (new chipsets, PCIe 7.0 IP, hyperscaler design win), and maintained a healthy cash balance and free cash flow. Key risks were highlighted but are manageable in the near term — primarily supply-chain tightness, short-term margin and expense variability, timing uncertainty for MRDIMM adoption, and a potential sequential dip in royalties. On balance, the positive operational and financial results and strategic wins outweigh the medium-term execution and supply risks.Positive Updates
Record Revenue and Earnings
Q2 revenue of $207.4M (first time > $200M), up 20% year-over-year and up 15% sequentially; non-GAAP net income $84.4M and non-GAAP EPS $0.77, up 24% year-over-year and up 21% sequentially.
Negative Updates
Ongoing Supply Chain Tightness and Lead-Time Increases
Management reported continued supply tightness and lengthening lead times; they expect supply constraints to persist into 2027, which could limit shipments and pace of ramps despite strong demand signals.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Revenue and Earnings
Q2 revenue of $207.4M (first time > $200M), up 20% year-over-year and up 15% sequentially; non-GAAP net income $84.4M and non-GAAP EPS $0.77, up 24% year-over-year and up 21% sequentially.
Read all positive updates
Company Guidance
Rambus guided to Q3 non‑GAAP revenue of $210–216 million (vs Q2 $207.4M), with product revenue $110–116M (midpoint implying ~14% sequential growth), royalties $69–75M and contract & other $25–31M; non‑GAAP total operating costs (including COGS) of $115–119M; non‑GAAP operating income of $91–101M; interest & other income of $7M; assumed non‑GAAP tax rate of 16% and 110M diluted shares, implying non‑GAAP EPS of $0.75–0.82; and capital expenditures of $13M — all presented on an ASC 606 revenue basis and reflecting management’s expectation of continued sequential revenue and EPS growth.Rambus Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 756.33M | 707.63M | 556.62M | 461.12M | 454.79M | 328.30M |
| Gross Profit | 591.98M | 537.56M | 419.91M | 318.78M | 314.02M | 229.87M |
| EBITDA | 319.43M | 314.14M | 239.27M | 241.09M | 41.17M | 78.27M |
| Net Income | 239.68M | 230.46M | 179.82M | 333.90M | -14.31M | 18.33M |
Balance Sheet | ||||||
| Total Assets | 1.61B | 1.53B | 1.34B | 1.26B | 1.01B | 1.23B |
| Cash, Cash Equivalents and Short-Term Investments | 824.95M | 761.83M | 481.80M | 425.84M | 313.23M | 485.61M |
| Total Debt | 21.80M | 43.65M | 30.15M | 30.71M | 44.48M | 198.78M |
| Total Liabilities | 145.67M | 165.12M | 222.44M | 220.13M | 233.30M | 370.25M |
| Stockholders Equity | 1.47B | 1.36B | 1.12B | 1.04B | 779.30M | 862.40M |
Cash Flow | ||||||
| Free Cash Flow | 299.54M | 333.18M | 199.90M | 172.55M | 209.91M | 195.43M |
| Operating Cash Flow | 332.70M | 360.02M | 230.60M | 195.79M | 230.39M | 209.22M |
| Investing Cash Flow | -263.79M | -223.11M | -56.72M | -57.40M | 151.98M | -115.66M |
| Financing Cash Flow | -68.55M | -54.41M | -167.99M | -169.62M | -362.94M | -114.21M |
Rambus Risk Analysis
Rambus disclosed 46 risk factors in its most recent earnings report. Rambus reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Rambus Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $9.87B | 41.00 | 17.39% | ― | 17.17% | 3.84% | |
72 Outperform | $19.18B | 106.09 | 13.19% | ― | 27.05% | ― | |
68 Neutral | $17.03B | 852.92 | 4.93% | ― | 17.45% | -61.07% | |
67 Neutral | $12.42B | 46.40 | 21.21% | ― | 21.32% | 19.06% | |
64 Neutral | $7.99B | 20.82 | 11.39% | ― | -0.18% | 403.74% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $9.37B | 32.10 | 5.04% | 4.72% | 0.06% | -22.93% |
* Technology Sector Average
RMBS
Rambus
101.52
28.66
39.34%
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SWKS
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QRVO
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12.48%
Rambus Corporate Events
Business Operations and StrategyStock Buyback
Rambus Announces $100 Million Accelerated Share Repurchase
Positive
Aug 5, 2026
On August 4, 2026, Rambus Inc. entered into an accelerated share repurchase agreement with Mizuho Markets Americas LLC, through its agent Mizuho Securities USA LLC, to buy back approximately $100 million of its common stock. The transaction forms ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.