Rambus Inc.
- Open
- 95.69
- Day high
- 105.28
- Day low
- 93.00
- Prev close
- 101.42
- Volume
- 3.9M
- Mkt cap
- $11.0B
- P/E (TTM)
- 47.6
- EPS (TTM)
- $2.13
- P/B
- 7.9
- P/S
- 15.2
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$11.0M over the last 3 months (0 open-market buys, 10 sales)
- 🏛Institutions mixed (13F)
Rambus Inc. (RMBS) is a Technology company listed on NASDAQ. The stock is up 49% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 10 sales (SEC Form 4).
Rambus Inc. (RMBS) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 6 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
RMBS earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 27, 2026 | $0.61 | $0.63 | +3.3% | $180M | +0.1% |
| Feb 2, 2026 | $0.68 | $0.68 | +0.0% | $190M | +1.1% |
| Feb 3, 2025 | $0.58 | $0.59 | +1.7% | $161M | +0.3% |
| May 1, 2023 | $0.42 | $0.44 | +4.8% | $114M | -7.0% |
| Feb 6, 2023 | $0.45 | $0.47 | +4.4% | $122M | -19.5% |
| May 2, 2022 | $0.37 | $0.39 | +5.4% | $99M | -22.6% |
| Feb 7, 2022 | $0.37 | $0.39 | +5.4% | $92M | -25.4% |
| Nov 1, 2021 | $0.33 | $0.34 | +3.0% | $81M | -28.1% |
| May 3, 2021 | $0.28 | $0.30 | +7.1% | $70M | -31.6% |
| Feb 1, 2021 | $0.25 | $0.28 | +12.0% | $62M | -36.1% |
| Nov 2, 2020 | $0.27 | $-0.05 | -118.5% | $57M | +11.1% |
| May 4, 2020 | $0.23 | $-0.02 | -108.7% | $64M | +39.1% |
RMBS insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 3, 2026 | Sayiner Necipdirector | Sell | 5,000 | $170.15 |
| Jun 3, 2026 | Higashi Emikodirector | Sell | 5,000 | $163.00 |
| Jun 2, 2026 | STANG ERIC Bdirector | Sell | 5,000 | $146.00 |
| May 27, 2026 | Higashi Emikodirector | Sell | 5,000 | $157.57 |
| May 26, 2026 | Shinn Johnofficer: SVP, General Counsel | Sell | 1,000 | $143.63 |
| May 26, 2026 | FAN XIANZHI SEANofficer: EVP, COO | Sell | 37,814 | $151.69 |
| May 26, 2026 | FAN XIANZHI SEANofficer: EVP, COO | Sell | 100 | $152.35 |
| May 11, 2026 | Sayiner Necipdirector | Sell | 9,824 | $130.18 |
| May 11, 2026 | LAUB STEVENdirector | Sell | 1,500 | $125.52 |
| May 4, 2026 | Gagneja Sumeetofficer: SVP, CFO | Grant | 26,802 | — |
| May 4, 2026 | Gagneja Sumeetofficer: SVP, CFO | Grant | 14,518 | — |
| Apr 27, 2026 | Rao Meeradirector | Sell | 2,972 | $150.30 |
| Apr 15, 2026 | Rao Meeradirector | Sell | 8,538 | $118.08 |
| Apr 7, 2026 | Allen John Kofficer: Chief Accounting Officer | Tax | 1,131 | $92.22 |
| Apr 3, 2026 | KISSNER CHARLESdirector | Grant | 2,223 | — |
Source: RMBS SEC Form 4 filings, latest Jun 3, 2026. For informational purposes only — not investment advice.
See the full RMBS insider & 13F page →Rambus Inc. company profile
Overview
Rambus Inc. (NASDAQ:RMBS) is a semiconductor intellectual property and product company founded in 1990 and headquartered in San Jose, California. The company went public in 1997 and has evolved from a memory architecture innovator into a diversified technology provider serving the global semiconductor industry. Rambus operates across three primary business segments: memory interface chips for data center applications, silicon intellectual property licensing, and patent licensing. The company has established itself as a key enabler of high-performance computing systems, particularly in data centers and artificial intelligence applications where memory bandwidth and system performance are critical.
Business
Rambus operates in the semiconductor industry, specifically focusing on memory and data movement technologies that enable high-performance computing systems. The company's business spans three main segments that collectively address the growing demand for faster, more efficient data processing. The Memory Interface Chips segment represents Rambus's largest product revenue driver, accounting for the majority of their approximately $247 million in annual product revenue. This segment primarily produces DDR5 Register Clock Driver (RCD) chips, which are essential components in server memory modules. These chips act as intermediaries between the memory controller and memory devices, ensuring proper signal timing and integrity in high-speed data transfers. The company also manufactures companion chips including Serial Presence Detect (SPD) hubs, temperature sensors, and Power Management Integrated Circuits (PMICs) that work alongside the main RCD chips to optimize memory module performance and power efficiency. The Silicon Intellectual Property (IP) segment generates approximately $130 million annually and licenses technology designs to semiconductor manufacturers. This includes memory controller IP for advanced memory standards like HBM4 (High Bandwidth Memory) and GDDR7 (Graphics DDR), interface IP for high-speed connections like PCIe 7.0 and CXL (Compute Express Link), and security IP that protects data in transit and at rest. These IP solutions are integrated into customers' chip designs, enabling them to build processors and systems with advanced memory and connectivity capabilities. The Patent Licensing segment provides a stable revenue foundation through royalty payments from major memory manufacturers including Samsung, SK Hynix, and Micron. This segment generates consistent quarterly revenues of approximately $60-75 million based on the companies' use of Rambus's patented memory architectures and technologies in their DRAM products.
Revenue model
Rambus generates revenue through three distinct business models that leverage different aspects of their technology portfolio and market position. Product Sales constitute the primary growth driver, with memory interface chips sold directly to memory module manufacturers and Original Equipment Manufacturers (OEMs). Customers pay per-chip pricing for RCD chips, PMICs, and companion chips that are integrated into server memory modules. The company benefits from the ongoing transition from DDR4 to DDR5 memory standards, with DDR5 chips commanding higher average selling prices. Revenue scales with the number of memory modules produced globally, particularly in the server market where Rambus holds a leading market position. IP Licensing operates on a contract-based model where semiconductor companies pay licensing fees and royalties to use Rambus's technology designs. Customers typically pay upfront licensing fees when adopting the IP, followed by ongoing royalties based on their chip production volumes. This model provides recurring revenue streams as customers scale their production of chips incorporating Rambus IP. Patent Licensing generates royalty income from major DRAM manufacturers who pay fees based on their memory chip shipments that utilize Rambus's patented technologies. These agreements typically span multiple years and provide predictable revenue streams, with recent extensions including Samsung through 2029 and Micron through 2029. Several factors influence Rambus's margins and profitability. Positive factors include the industry transition to higher-performance memory standards like DDR5, growing artificial intelligence workloads that demand more memory bandwidth, increasing server configurations with more memory per system, and the company's technology leadership position that supports premium pricing. Negative factors include typical semiconductor industry price erosion of low single digits annually, competitive pressure from alternative memory interface solutions, cyclical memory market downturns that reduce customer demand, and the need for continuous R&D investment to maintain technology leadership across multiple product generations.
Competitive moat
Rambus possesses a moderate to strong competitive moat built primarily on technological expertise, patent portfolio, and market position, though this moat faces ongoing challenges from industry dynamics and competition. The company's strongest moat element is its extensive patent portfolio covering fundamental memory architectures and high-speed data transfer technologies. These patents, accumulated over three decades, provide defensive protection and generate steady licensing revenues from major industry players. The recent extensions of licensing agreements with Samsung and Micron through 2029 demonstrate the enduring value of this intellectual property portfolio. Technological leadership represents another significant moat component. Rambus consistently delivers first-to-market solutions for new memory standards, such as being first with DDR5 RCD chips and HBM4 memory controller IP. This technological edge stems from deep expertise in signal integrity, power management, and high-speed interface design that competitors find difficult to replicate quickly. The company's ability to solve complex engineering challenges in memory subsystems creates customer dependency and switching costs. Customer relationships and ecosystem position provide additional competitive protection. Rambus works closely with major memory manufacturers, server OEMs, and processor companies throughout multi-year product development cycles. Once integrated into customer designs, Rambus solutions become difficult to replace due to qualification requirements, design complexity, and the critical nature of memory performance in high-end systems. However, the moat faces several potential threats. Large semiconductor companies like Intel, AMD, and NVIDIA possess significant R&D resources and could potentially develop competing solutions or acquire alternative suppliers. The patent portfolio, while valuable, will eventually expire, reducing long-term licensing revenues. Additionally, industry consolidation could reduce the number of independent customers, potentially giving larger players more negotiating leverage. Memory standards evolution also creates periodic disruption opportunities where new entrants could challenge established positions with innovative approaches.
Risks & safety
Rambus demonstrates a strong margin of safety with excellent financial health, reasonable valuation metrics, and diversified revenue streams that provide stability during market cycles. Financial Strength: • Cash and securities: $514.4 million providing substantial liquidity buffer • Minimal debt: Debt-to-equity ratio of 2.5%, indicating very low financial leverage • Strong cash generation: $231 million operating cash flow in 2024, $200 million free cash flow • Current ratio of 8.4x shows excellent short-term liquidity position • No significant solvency risk given strong balance sheet and cash generation Valuation Metrics: • P/E ratio of 23.0x appears reasonable for a technology company with growth prospects • EV/EBITDA of 17.5x suggests moderate valuation relative to cash flow generation • Price-to-book ratio of 4.8x reflects premium to tangible assets but justified by IP value • Graham number analysis suggests the stock trades near intrinsic value estimates Other Considerations: • Diversified revenue streams across products, IP licensing, and patent royalties reduce concentration risk • Long-term patent licensing agreements provide revenue visibility through 2029 • Strong competitive position in growing DDR5 market provides growth runway • Conservative management approach with consistent share repurchases and dividend capacity
Recent development
Over the past few years, Rambus has executed a focused strategy to capitalize on the artificial intelligence boom and data center growth trends while expanding its addressable market through new product categories. The company's most significant strategic pivot has been aggressive expansion into companion chip markets beyond their core RCD business. Starting with modest SPD hub and temperature sensor shipments, Rambus introduced their first DDR5 server PMIC family in 2024, targeting the extreme current requirements of high-performance memory modules. This expansion potentially quadruples their content per memory module and addresses a market opportunity they estimate could reach $100 million annually. Technology leadership initiatives have accelerated with the introduction of eight new chip products in 2024 alone. Key launches include the industry's first DDR5 MRDIMM 12800 chipset for ultra-high bandwidth applications, Gen 5 RCD chips for DDR5-8000 speeds, and Client Clock Driver chips targeting high-performance PC markets. These products position Rambus to capture growth from both server and client computing segments. The Silicon IP portfolio has expanded significantly with next-generation memory controller IP including HBM4 and GDDR7 solutions that serve the AI accelerator market. The company has also developed PCIe 7.0 IP and CXL controller technology to address the growing need for high-speed interconnects in AI and data center applications. This IP expansion strategy targets the specialized processor market where AI workloads drive demand for advanced memory and connectivity solutions. Market positioning adjustments include divesting the PHY IP business to focus resources on higher-growth digital IP and memory interface products. The company has also strengthened its patent licensing foundation with multi-year agreement extensions, providing stable cash flow to fund continued R&D investments. Recent quarters show this strategy paying off with record product revenues and strong IP licensing growth driven by AI-related customer adoption.
RMBS company profile · for informational purposes only — not investment advice.
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