Rambus Stock Powers Up After Memory Chipmaker Snags A Bullish Rating: Retail Upbeat
By Stocktwits Inc | First Published Nov 26, 2024, 9:11 PM ISTRambus’ technology and IP is central to the artificial intelligence-driven performance increase in data centers, said Baird analyst Tristan Gerra.
Shares of Rambus, Inc. ($RMBS), a provider of Double Data Rate (DDR) memory interface chips, rose sharply early Tuesday, thanks to a positive analyst action.
In a note published late-Tuesday, Baird analyst Tristan Gerra initiated coverage of Rambus with an ‘Outperform’ rating and a $90 price target, which suggests scope for about 58% upside potential.
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The analyst noted that Rambus’ technology and IP is central to the artificial intelligence (AI)-driven performance increase in data centers. "Rambus is at the center of our 2025 semiconductor investment themes, which include AI memory, processors and optical systems," he said.
Rambus has over 75% revenue exposure to data centers with AI becoming a major component of growth, Gerra said.
He noted that the company is first to market with the October announcement of the "industry-first complete memory interface chipset for Gen 5 DDR5 RDIMM and next-generation MRDIMM." These bring much higher data transfer rates, lower latency and power consumption, he added.
With the lineup, the company is poised to see a significant total addressable market expansion opportunity, Gerra said.
The analyst sees major license deals with leading AI chip makers into the next year due to the HBM4 controller IP it announced in September that is expected to ramp in 2026.
Rambus is poised to see significant growth, content increase, and share gains ahead, Baird said, adding that its data center chipset opportunity is estimated at $1.5 billion.
On Stocktwits platform, retailers turned ‘bullish’ (67/100) from a ‘neutral’ disposition a day ago, with message volume rising to ‘high’ level.
At last check, Rambus was up 3.27% to $58.75.
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