BN · rank #11 · 2026-09-07
RMBS
NASDAQ · $9.24B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.55 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +20.0% |
| Forward net margin Consensus forward net margin. | +32.4% |
| Net margin TTM Trailing twelve month net margin. | +31.7% |
| Margin expansion Forward minus trailing net margin (percentage points). | +0.7% |
| Forward PEG Forward P/E to growth. Below 1 is cheap for the growth. | 3.80 |
| Debt / FCF Net debt relative to free cash flow. Lower is safer. | 0.07× |
| Analyst upside Spread between the consensus 12m target and the current price. | +73.0% |
| Last EPS surprise Most recent reported EPS versus consensus. | +10% |
| Market cap (USD) | $9.24B |
The AI research card
Independent qualitative review of each pick before the order is placed. On the rare day the research service is unavailable, the paper book trades on the quant ranking alone and no card appears here.
Summary
Rambus is a fabless semiconductor and IP licensing company supplying DDR5 memory interface chips, HBM/GDDR/PCIe/CXL controller IP, and security IP to data center, AI, and government customers.
Rationale
Record Q2 2026 revenue (+20% YoY), ~45% non-GAAP operating margins, a 10.3% EPS beat, and an expanding PCIe 7.0/CXL 3.1 portfolio directly confirm the bottleneck-solver thesis—Rambus sits at the memory and interconnect chokepoints that AI infrastructure scaling cannot bypass.
Material risks
- 1Royalty revenue concentration risk—if hyperscaler customers (e.g., Samsung, SK Hynix, Micron) internalize memory interface IP or negotiate materially lower licensing rates, the $84M royalty stream that underpins margin quality could compress without warning.
- 2Valuation is genuinely stretched at fwd PEG 3.8x; the 73% analyst upside implies consensus is pricing in flawless execution, leaving the stock vulnerable to any product revenue deceleration or CXL adoption timeline slip.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 2 of 3 voted to proceed.