Rambus (RMBS) Stock Forecast & Price Target

Rambus Inc. demonstrated robust financial performance in the recent quarter, with cash and cash equivalents and marketable securities increasing to $673.3 million, supported by a solid cash flow from operations of $88.4 million. The company's operational revenue reached $179.5 million, surpassing expectations, while product revenue grew by 15% sequentially and a notable 41% year-over-year, propelled by strong demand and leadership in DDR5 memory technology. Additionally, Rambus is projected to achieve an impressive 40% year-over-year increase in semiconductor revenue in 2025, reflecting a positive growth outlook for the company.

Rambus Inc. reported contract and other revenue of $21.8 million, falling short of the guidance midpoint of $28.0 million and consensus expectations of $63.0 million, indicating a significant revenue shortfall. Despite achieving double-digit top-line growth and maintaining high operating margins exceeding 45%, recent supply chain disruptions have negatively impacted production, creating uncertainty surrounding future performance. The reliance on inventory to meet orders during this period has raised concerns about the company's operational stability, contributing to a negative outlook on its stock valuation.