olivLaw · US equity research
Rambus Inc. RMBS
Semiconductors & Related Devices · SIC 3674 · Vertical: Semiconductors & Related Devices (SIC 3674)
Rambus is a global semiconductor company that designs memory interface chips and silicon IP for data center and artificial intelligence infrastructure, complemented by a patent licensing business. With demand for AI driving growth, revenue rose from $707.6 million in fiscal 2025 to $218.3 million in the third quarter of 2026, making the trajectory of its memory chip segment the main item to watch.
At the close of 04 Nov 2026, Rambus Inc. (RMBS) stock was 82.90 USD (−5.99% on the day), with market capitalisation 8.9 bn USD, P/E 34.1 on diluted EPS of 2.43 USD over the last 12 months, beta 2.65, 52-week range 79.73–170.66 USD. Latest reported quarter (Q3 2026): revenue of 218.3 m USD (+22.3% YoY), net income of 74.6 m USD (+54.1% YoY), diluted EPS 0.69 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 38.5
- weak (30–45)
- Bollinger (20, 2)
- 78.00 – 105.77
- in the lower half of the band · %B 0.18 · band width 30.2%
- SMA 50 / 200
- 93.56 / 107.69
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- -3.48 / -2.64
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −24.8% | −1.1% | −23.7 pp | — |
| 3 months | −14.8% | −0.5% | −14.3 pp | — |
| 6 months | −36.3% | +4.4% | −40.6 pp | — |
| Year to date | −9.8% | +12.3% | −22.1 pp | — |
| 1 year | −17.4% | +13.5% | −30.9 pp | +35.9% |
| 3 years | +42.8% | +76.4% | −33.7 pp | +34.4% |
| 5 years | +245.4% | +63.7% | +181.7 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 161.1 m | 166.7 m | 172.2 m | 178.5 m | 190.2 m | 180.2 m | 207.4 m | 218.3 m |
| Cost of revenue | 31.5 m | 32.8 m | 34.8 m | 36.6 m | 40.2 m | 36.5 m | 42.0 m | 47.4 m |
| Gross profit | 129.6 m | 133.8 m | 137.4 m | 141.9 m | 150.0 m | 143.7 m | 165.4 m | 170.9 m |
| Research & development | 43.7 m | 42.6 m | 46.3 m | 49.5 m | 49.2 m | 50.2 m | 51.1 m | 49.4 m |
| SG&A | 28.0 m | 28.1 m | 28.1 m | 29.2 m | 30.0 m | 31.7 m | 38.3 m | 37.7 m |
| Operating income | 57.9 m | 63.1 m | 63.0 m | 63.3 m | 70.8 m | 61.8 m | 72.7 m | 83.7 m |
| Depreciation & amortisation | 2.8 m | 2.8 m | 3.0 m | 3.0 m | 3.1 m | 3.1 m | 3.0 m | 3.0 m |
| Interest expense | 352.0 k | 377.0 k | 382.0 k | 294.0 k | 320.0 k | 279.0 k | 302.0 k | 279.0 k |
| Pre-tax income | 62.3 m | 67.6 m | 67.8 m | 69.3 m | 77.2 m | 68.6 m | 79.5 m | 90.5 m |
| Income tax | 103.0 k | 7.3 m | 9.9 m | 20.9 m | 13.4 m | 8.8 m | 11.9 m | 16.0 m |
| Net income | 62.2 m | 60.3 m | 57.9 m | 48.4 m | 63.8 m | 59.9 m | 67.6 m | 74.6 m |
| Diluted EPS | 0.57 ≈ | 0.56 | 0.53 | 0.44 | 0.58 ≈ | 0.55 | 0.61 | 0.69 |
| Operating cash flow | 59.0 m | 77.4 m | 94.4 m ≈ | 88.4 m ≈ | 99.8 m | 83.2 m | 61.2 m ≈ | 102.5 m ≈ |
| Capex | 6.5 m | 7.9 m | 6.5 m ≈ | 5.9 m ≈ | 6.5 m | 11.6 m | 9.1 m ≈ | 6.6 m ≈ |
| Share repurchases | 0 | 2.2 m | 3.7 m ≈ | 0 ≈ | 1.3 m | 2.6 m | 387.0 k ≈ | 135.4 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 38 percentile of its own 21-quarter history (min 18.9, median 43.5, max 7,301.9; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 231.2 m | 227.6 m | 246.3 m | 328.3 m | 454.8 m | 461.1 m | 556.6 m | 707.6 m |
| Revenue YoY | −41.2% | −1.6% | +8.2% | +33.3% | +38.5% | +1.4% | +20.7% | +27.1% |
| Net income | -158.0 m | -86.0 m | -40.5 m | 18.3 m | -14.3 m | 333.9 m | 179.8 m | 230.5 m |
| Net income YoY | unavailable | unavailable | unavailable | unavailable | −178.1% | unavailable | −46.1% | +28.2% |
| Diluted EPS | -1.46 | -0.77 | -0.36 | 0.16 | -0.13 | 3.01 | 1.65 | 2.11 |
| Diluted EPS YoY | unavailable | unavailable | unavailable | unavailable | −181.3% | unavailable | −45.2% | +27.9% |
| net % | -68.3% | -37.8% | -16.4% | 5.6% | -3.1% | 72.4% | 32.3% | 32.6% |
| Free cash flow | 75.5 m | 122.1 m | 155.7 m | 195.4 m | 212.9 m | 172.5 m | 199.9 m | 333.2 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 182.8 m USD
- Financial debt
- unavailable USD
- Net debt
- unavailable USD
- Equity
- 1.4 bn USD
- Total assets
- 1.5 bn USD
- Debt / equity
- unavailable
- Current ratio
- 8.20x
- ROE
- 18.5%
- ROA
- 16.0%
- FCF margin
- 47.1%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 246.3 m | 328.3 m | 454.8 m | 461.1 m | 556.6 m | 707.6 m | SEC (XBRL)· 18 Feb 2026verified |
| Cost of revenue | 60.7 m | 70.4 m | 107.6 m | 103.4 m | 110.1 m | 144.4 m | SEC (XBRL)· 18 Feb 2026verified |
| Gross profit | 185.6 m | 257.9 m | 347.2 m | 357.7 m | 446.5 m | 563.2 m | SEC (XBRL)· 18 Feb 2026verified |
| Research & development | 139.8 m | 135.7 m | 158.8 m | 156.8 m | 162.9 m | 187.7 m | SEC (XBRL)· 18 Feb 2026verified |
| SG&A | 86.4 m | 91.1 m | 106.7 m | 108.1 m | 104.1 m | 115.3 m | SEC (XBRL)· 18 Feb 2026verified |
| Operating income | -44.1 m | 24.3 m | 76.9 m | 153.6 m | 183.0 m | 260.2 m | SEC (XBRL)· 18 Feb 2026verified |
| Depreciation & amortisation | — | — | 9.3 m | 10.1 m | 10.1 m | 11.9 m | SEC (XBRL)· 18 Feb 2026verified |
| EBITDA | — | — | 86.2 m ≈ | 163.8 m ≈ | 193.1 m ≈ | 272.1 m ≈ | SEC (XBRL)· 18 Feb 2026derived |
| Interest expense | 10.3 m | 10.7 m | 1.9 m | 1.5 m | 1.4 m | 1.4 m | SEC (XBRL)· 18 Feb 2026verified |
| Pre-tax income | -36.5 m | 23.3 m | -7.8 m | 187.2 m | 200.0 m | 282.0 m | SEC (XBRL)· 18 Feb 2026verified |
| Income tax | 3.9 m | 5.0 m | 6.5 m | -146.7 m | 20.2 m | 51.5 m | SEC (XBRL)· 18 Feb 2026verified |
| Net income | -40.5 m | 18.3 m | -14.3 m | 333.9 m | 179.8 m | 230.5 m | SEC (XBRL)· 18 Feb 2026verified |
| Diluted EPS | -0.36 | 0.16 | -0.13 | 3.01 | 1.65 | 2.11 | SEC (XBRL)· 18 Feb 2026verified |
| Weighted average diluted shares | 113.3 m | 114.9 m | 109.5 m | 110.9 m | 109.0 m | 109.2 m | SEC (XBRL)· 18 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 129.0 m | 107.9 m | 125.3 m | 94.8 m | 99.8 m | 182.8 m | SEC (XBRL)· 18 Feb 2026verified |
| Receivables | 27.9 m | 44.1 m | 55.4 m | 82.9 m | 122.8 m | 137.5 m | SEC (XBRL)· 18 Feb 2026verified |
| Inventories | 14.5 m | 8.5 m | 20.9 m | 36.2 m | 44.6 m | 44.1 m | SEC (XBRL)· 18 Feb 2026verified |
| Current assets | 699.7 m | 684.4 m | 527.2 m | 630.6 m | 690.3 m | 988.8 m | SEC (XBRL)· 18 Feb 2026verified |
| Property, plant & equipment, net | 57.7 m | 56.0 m | 86.3 m | 67.8 m | 75.5 m | 113.1 m | SEC (XBRL)· 18 Feb 2026verified |
| Goodwill | 183.2 m | 278.8 m | 292.0 m | 286.8 m | 286.8 m | 286.8 m | SEC (XBRL)· 18 Feb 2026verified |
| Intangibles (excl. goodwill) | 36.5 m | 58.4 m | 50.9 m | 28.8 m | 17.1 m | 10.2 m | SEC (XBRL)· 18 Feb 2026verified |
| Total assets | 1.3 bn | 1.2 bn | 1.0 bn | 1.3 bn | 1.3 bn | 1.5 bn | SEC (XBRL)· 18 Feb 2026verified |
| Accounts payable | 9.0 m | 11.3 m | 24.8 m | 18.1 m | 18.5 m | 35.9 m | SEC (XBRL)· 18 Feb 2026verified |
| Current liabilities | 85.9 m | 267.3 m | 126.7 m | 89.1 m | 81.8 m | 120.6 m | SEC (XBRL)· 18 Feb 2026verified |
| Total liabilities | 338.7 m | 370.3 m | 233.3 m | 220.1 m | 222.4 m | 165.1 m | SEC (XBRL)· 18 Feb 2026verified |
| Equity | 912.7 m † | 862.4 m † | 779.3 m † | 1.0 bn † | 1.1 bn † | 1.4 bn † | SEC (XBRL)· 18 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 185.5 m | 209.2 m | 230.4 m | 195.8 m | 230.6 m | 360.0 m | SEC (XBRL)· 18 Feb 2026verified |
| Capex | 29.7 m | 13.8 m | 17.5 m | 23.2 m | 30.7 m | 26.8 m | SEC (XBRL)· 18 Feb 2026verified |
| Free cash flow | 155.7 m ≈ | 195.4 m ≈ | 212.9 m ≈ | 172.5 m ≈ | 199.9 m ≈ | 333.2 m ≈ | SEC (XBRL)· 18 Feb 2026derived |
| Investing cash flow | -97.6 m | -115.7 m | 152.0 m | -57.4 m | -56.7 m | -223.1 m | SEC (XBRL)· 18 Feb 2026verified |
| Financing cash flow | -61.2 m | -114.2 m | -362.9 m | -169.6 m | -168.0 m | -54.4 m | SEC (XBRL)· 18 Feb 2026verified |
| Share repurchases | 50.1 m | 100.1 m | 100.4 m | 100.5 m | 113.3 m | 7.1 m | SEC (XBRL)· 18 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
4 indicators that do not apply to the sector.
Valuation
olivLaw classification
- valuation methods computed: 0 of at least 1
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 8.9 bn USD
Key indicators
Coverage and freshness
Score by group
77% · Insufficient data
Estimated value range
unavailable — no valuation method could be computed
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
- DCF (discounted cash flow)unavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: EV/Salesunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
no valuation method could be computed
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: valuation methods computed: 0 of at least 1
| Factor | Value | Score | Weight used |
|---|---|---|---|
| Gross margin · Quality | 79.1% | 98 (on a fixed band) | 14% |
| EBIT margin · Quality | 36.3% | 84 (vs peers) | 11% |
| FCF margin · Quality | 39.3% | 100 (on a fixed band) | 11% |
| Revenue CAGR 3Y · Growth | 15.9% | 64 (on a fixed band) | 22% |
| Revenue growth (YoY) · Growth | 27.1% | 69 (vs peers) | 11% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 9.4x | 100 (on a fixed band) | 8% |
| EV/Sales · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 3.5% | 70 (on a fixed band) | 17% |
| Shareholder yield (distributions) · Returns | 1.6% | 60 (on a fixed band) | 6% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial100/100 · 1/2 factors with a value
- Growth65/100 · 2/2 factors with a value
- Quality94/100 · 3/3 factors with a value
- Returns60/100 · 1/1 factors with a value
- Valuation· partial70/100 · 1/2 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
RAMBUS INC (RMBS). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 707.6 m USD in 2025; YoY growth 27.1%; net margin 33.4%; ROE 19.6%.
Valuation cannot be computed from the available data.
Insufficient data for a verdict (valuation methods computed: 0 of at least 1).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Gross margin: 79.1%
- EBIT margin: 36.3%
- FCF margin: 39.3%
- Current ratio: 9.4x
- FCF yield: 3.5%
What contradicts it
No signal among the computed factors. That is not an absence of risk: factors without data were not assessed, and business risks (margins, inventory, demand) are in the source-based analysis.
Not assessed (insufficient data or a ratio without meaning): Net debt / EBITDA, EV/Sales.
Versus the vertical median
Semiconductors & Related Devices (SIC 3674) · same industry (4-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| NVDANvidia Corp | 4,823.1 bn | 25.3 | 117.2% | 63.7% | +65.5% | +13% / +328% |
| AVGOBroadcom Inc. | 1,553.7 bn | 41.6 | 44.2% | 42.9% | +23.9% | −19% / +252% |
| MUMicron Technology, Inc. | 899.7 bn | 10.7 | 88.3% | 63.8% | +256.3% | +236% / +945% |
| AMDAdvanced Micro Devices, Inc | 801.6 bn | 106.3 | 11.8% | 16.8% | +34.3% | +125% / +303% |
| INTCIntel Corporation | 309.7 bn | — | -10.9% | -20.1% | −0.5% | +44% / +30% |
| AMATApplied Materials Inc | 293.2 bn | 31.9 | 41.1% | 30.1% | +4.4% | +46% / +147% |
| TXNTexas Instruments Inc | 284.6 bn | 40.4 | 39.7% | 34.3% | +13.0% | +85% / +104% |
| ADIAnalog Devices Inc | 196.8 bn | 48.2 | 12.2% | 29.8% | +16.9% | +53% / +122% |
| MRVLMarvell Technology, Inc | 140.1 bn | 52.8 | 16.5% | 27.9% | +42.1% | +79% / +187% |
| NXPINXP Semiconductors N.V. | 66.8 bn | 20.8 | 29.2% | 23.4% | −2.7% | +36% / +30% |
| MPWRMonolithic Power Systems, Inc. | 61.5 bn | 69.5 | 25.1% | 23.9% | +26.4% | +36% / +130% |
| MCHPMicrochip Technology Incorporated | 40.9 bn | 104.2 | 7.2% | 9.3% | +7.1% | +41% / −10% |
| ALABAstera Labs, Inc. | 39.0 bn | 89.0 | 28.2% | 29.6% | +115.1% | +42% / unavailable |
| ONOn Semiconductor Corp | 27.7 bn | 41.4 | 8.9% | 10.8% | −15.3% | +42% / −0% |
| CRDOCredo Technology Group Holding Ltd | 25.7 bn | 48.7 | 30.7% | 33.8% | +205.7% | −23% / +662% |
| QQnity Electronics, Inc. | 24.8 bn | 42.0 | 7.6% | 11.5% | +9.7% | +46% / unavailable |
| GFSGLOBALFOUNDRIES Inc. | 22.4 bn | 25.4 | 7.8% | 13.0% | +0.6% | +13% / −25% |
| FSLRFirst Solar, Inc. | 20.9 bn | 11.3 | 18.7% | 37.1% | +24.1% | −29% / +23% |
| MTSIMACOM Technology Solutions Holdings, Inc. | 17.8 bn | 74.6 | 17.2% | 20.7% | +32.6% | +33% / +178% |
| RMBSRambus Inc | 8.9 bn | 34.1 | 19.6% | 33.4% | +27.1% | −17% / +43% |
| ALGMAllegro Microsystems, Inc. | 5.8 bn | 209.1 | 3.2% | 3.1% | +22.8% | +17% / +15% |
| AAOIApplied Optoelectronics, Inc. | 5.0 bn | — | -5.4% | -9.6% | +82.8% | +121% / +347% |
| HIMXHimax Technologies, Inc. | 3.6 bn | 80.3 | 4.9% | 5.3% | −8.2% | +38% / +83% |
| KLICKulicke And Soffa Industries, Inc. | 3.6 bn | 31.5 | 13.2% | 12.2% | −7.4% | +52% / +33% |
| PENGPenguin Solutions, Inc. | 2.9 bn | 18.6 | 39.5% | 10.4% | +26.5% | +139% / +190% |
1- and 3-year price returns: for RMBS from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 55.34 Total return -33% · Per year -33% | 97.39 Total return 17% · Per year 17% | 146.09 Total return 76% · Per year 76% |
| 3 years | 65.64 Total return -21% · Per year -7% | 128.80 Total return 55% · Per year 16% | 210.36 Total return 154% · Per year 36% |
| 5 years | 77.86 Total return -6% · Per year -1% | 170.34 Total return 105% · Per year 15% | 302.92 Total return 265% · Per year 30% |
- Exit P/E± 32.20
- Net margin± 22.54
- Annual revenue growth± 16.81
- Annual dilution± 1.89
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Rambus is a global semiconductor company that designs memory interface chips and silicon IP for data center and artificial intelligence infrastructure, complemented by a patent licensing business. With demand for AI driving growth, revenue rose from $707.6 million in fiscal 2025 1 to $218.3 million in the third quarter of 2026 3, making the trajectory of its memory chip segment the main item to watch.
SWOT
Strengths
- The company holds a declared leadership position in DDR5 memory chips and has a broad patent and security IP portfolio 1. Cash generation is strong, with operating cash flow reaching record levels 13.
- The fabless model reduces capital needs and lets the company focus on research and development 1. Research spending has been sustained and has risen over recent years 1.
- Rambus has established relationships with large DRAM makers and with companies in consumer electronics and data centers 1.
Weaknesses
- Customer concentration is high, and losing one of the largest customers could significantly affect revenue 1.
- The company relies on third parties for fabrication and assembly, and their problems could affect deliveries 1.
- Royalty revenue depends on contract renewals and their structure, which makes revenue hard to predict 1.
Opportunities
Risks
- Customer concentrationhigh
A small number of customers generates most revenue, and losing or reducing orders from them could have a significant effect 1.
- Cyclicality of the DRAM industryhigh
DRAM makers are exposed to strong cycles, and their consolidation could reduce licensing revenue 1.
- Dependence on AI adoptionmedium
Demand for AI-related products is hard to forecast, and the pace of adoption could differ from expectations 1.
- Lowest-royalty clausesmedium
Some contracts require that certain customers receive the lowest rate offered to others, which limits pricing flexibility 1.
- International and trade risksmedium
Revenue from outside the United States and tariffs could affect operations and demand 1.
Investment thesis
What would need to be true (bull case)
- If demand for memory in data centers continues, recent quarterly results suggest product revenue could keep growing 3.
- Expansion into AI PCs and security IP could diversify revenue beyond patent licenses 13.
- Strong operating cash flow gives the company resources for research and shareholder returns, which may support long-term growth 12.
What would break the thesis
- High customer concentration and DRAM cyclicality could produce significant revenue swings from one quarter to the next 1.
- If AI adoption slows, demand for the company's products could fall faster than expected 1.
- Competition from larger companies and customers' in-house teams could reduce market share 1.
What to watch
- Delivery against the fourth-quarter 2026 revenue guidanceQ4 2026
- Trend in product revenue and concentration among large customersQ1 2027
- Renewal of license agreements and any move to fully paid-up licenses2027
- Confirmation of the finance leadership change announced in February 2026next 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Rambus describes itself as a company that supplies chips and silicon IP for data-intensive computing systems, focusing on data center and AI infrastructure 1. The company runs a fabless model, using third-party foundries and contractors to fabricate, assemble and test its chips 1. It was founded in 1990, is headquartered in San Jose, California, and had 791 employees at 31 December 2025 1.
Core products are memory interface chips sold to memory module makers, OEMs and hyperscalers, along with digital controller cores and security IP sold mainly to chip makers 1. Patent royalties come from licenses granted to major semiconductor and electronics companies 1. The stated strategy is to focus the product portfolio on its semiconductor core, improve operational efficiency and reinvest cash generation for growth 2.
On 26 October 2026 Rambus reported record quarterly revenue and issued fourth-quarter 2026 guidance of $227 million to $233 million 3. The company notes that purchase orders are generally short-term and may be rescheduled or canceled, so it does not regard backlog as a reliable indicator of future product sales 1.
Segments
Memory interface chips (product revenue)
Sales of DDR5 and LPDDR5 module chips form the main product segment, with product revenue of $347.8 million in 2025, up approximately 41% from 2024 1. Product revenue reached $114.3 million in the third quarter of 2026 3. Products are sold to DRAM makers such as Micron, Samsung and SK hynix, and directly to cloud providers and system makers 1.
Silicon IP and contract revenue
This segment covers high-speed interface and security IP sold mainly to leading chip makers for custom silicon designs 1. Contract and other revenue was 11% of revenue in 2025 1 and $27.0 million in the third quarter of 2026 3. Invoicing timing can vary significantly between periods 1.
Market context
Rambus operates in the data-intensive semiconductor market, where growing AI workloads have made memory performance a constraint on computing systems 1. The company points to a persistent gap between processor performance and memory subsystem capability as one of the largest bottlenecks 1. Demand for these products depends on AI adoption, which may develop differently from what is anticipated 1.
The market is highly cyclical, and DRAM makers, which make up a significant part of revenue, are prone to business cycles and consolidation 1. Customer concentration is high, with the top five customers representing 66% of consolidated revenue in 2025 1, and 82% of revenue came from companies headquartered outside the United States 1.
Trends
- Semiconductor and macroeconomic cyclicalityheadwind
Cycles in the DRAM industry, customer consolidation and trade tensions, including tariffs, could reduce demand or delay licensing 1. The company says such factors could cause substantial fluctuations in its results 1.
- Expiry of royalty-bearing licensesheadwind
Some license agreements may convert to fully paid-up licenses at expiry or on certain milestones, which could reduce royalty revenue 1. This transition is a risk that depends on contract renewals 1.
- Power efficiency requirementsmixed
Rising performance demands make power efficiency and thermal management more important, and the company's PMIC products relate to these needs 13. The effect depends on customers adopting these products.
Competitive position
In memory interface chips, Rambus competes with international semiconductor companies including Monolithic Power Systems, Montage Technology, Renesas and Texas Instruments 1. In silicon IP, competition comes from customers' in-house design teams and third-party IP suppliers such as Cadence and Synopsys 1.
Many competitors are larger and may have better access to financial, technical and sales resources 1. The company notes that alternative technologies offering comparable performance at lower cost or without royalties may be adopted by customers 1. Enforcing patent rights may require costly litigation with uncertain results 1.
- Monolithic Power SystemsMPWR
Competitor in memory-related chips, named in the company's annual report 1.
- Montage Technology
Competitor in memory interface chips, named in the annual report 1.
- Texas InstrumentsTXN
Semiconductor maker named as a competitor in the memory chip market 1.
- Cadence and SynopsysCDNS
IP providers that compete in the silicon IP segment, named in the report 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Quarterly report26 Oct 2026
- Current report26 Oct 2026Results of operations · Financial statements and exhibits
- Current report04 Sept 2026Departure or appointment of officers
- Current report05 Aug 2026Material agreement · Creation of a direct financial obligation · Financial statements and exhibits
- Quarterly report28 Jul 2026
- Current report27 Jul 2026Results of operations · Financial statements and exhibits
- Current report29 Apr 2026Departure or appointment of officers · Financial statements and exhibits
- Quarterly report28 Apr 2026
- Current report27 Apr 2026Results of operations · Financial statements and exhibits
- Current report24 Apr 2026Shareholder vote · Other events
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Rambus Inc. · 18 Feb 2026
- [2] Form 10-Q, quarter ended 2026-09-30 · SEC / Rambus Inc. · 26 Oct 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Rambus Inc. · 26 Oct 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.