RMBS

Rambus Inc. recently reported second-quarter 2026 results showing revenue of US$207.39 million and net income of US$67.61 million, alongside the completion of a multi-year share repurchase program totaling 14,484,994 shares for US$466.93 million since its November 2020 authorization. The company reinforced its position in high-speed, AI-focused memory solutions by launching complete DDR5 9600 chipsets, securing a key next-generation HBM IP design win with a Tier-1 U.S. hyperscaler, and guiding to higher third-quarter revenue and GAAP diluted EPS. We’ll now examine how Rambus’s record quarterly performance, supported by expanding DDR5 and AI memory solutions, may influence its existing investment narrative. Explore 26 top quantum computing companies leading the revolution in next-gen technology and shaping the future with breakthroughs in quantum algorithms, superconducting qubits, and cutting-edge research. To own Rambus today, you need to believe that demand for high-speed, AI-centric memory solutions will keep underpinning its DDR5 and HBM-focused portfolio, while the company manages concentration in a few key product lines. The record Q2 results and upbeat Q3 guidance support the near-term catalyst around DDR5 and AI memory ramps, but they do not remove the risk that technology transitions slip or that end markets like data center and PCs remain volatile. The most relevant update here is Q3 2026 guidance, with revenue projected at US$210 million to US$216 million and GAAP diluted EPS of US$0.59 to US$0.67. This guidance sits alongside the launch of DDR5 9,600 chipsets and an HBM IP win with a Tier 1 hyperscaler, tying directly into the thesis that new AI-focused products and IP design wins could offset timing risks around MRDIMM, HBM4 and future platform rollouts. Yet, against this strength, investors should still be aware of how delays or hiccups in next generation memory platform launches could... Read the full narrative on Rambus (it's free!) Rambus’ narrative projects $1.2 billion revenue and $418.1 million earnings by 2029. Uncover how Rambus' forecasts yield a $149.00 fair value, a 80% upside to its current price. Before this news, the most optimistic analysts were assuming earnings could reach about US$480 million, which is far more upbeat than views that highlight how any supply constraint or platform delay could cap Rambus’s upside, so you should expect opinions on this quarter’s results and guidance to differ widely and be ready to compare several versions of the story. Explore 4 other fair value estimates on Rambus - why the stock might be worth as much as 80% more than the current price! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your Rambus research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision. Our free Rambus research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Rambus' overall financial health at a glance. These stocks are moving-our analysis flagged them today. Act fast before the price catches up: Find 49 companies with promising cash flow potential yet trading below their fair value. The future of work is here. Discover the 34 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. Invest in the nuclear renaissance through our list of 90 elite nuclear energy infrastructure plays powering the global AI revolution. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include RMBS. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Rambus Inc. RMBS delivered a strong second quarter as management highlighted expanding opportunities across AI infrastructure, memory interface chips and silicon IP. While record financial performance underscored the company's operational momentum, executives spent much of the earnings call discussing how rising AI workloads are reshaping memory architectures and creating long-term growth opportunities for Rambus. The company also projected another quarter of sequential revenue growth, supported by continued demand for DDR5 memory solutions and licensing activity, even as executives cautioned that industrywide supply constraints remain a key variable. Rambus reported second-quarter revenues of $207.40 million, which beat the Zacks Consensus Estimate of $198.30 million. Non-GAAP earnings were $0.77 per share, which outpaced the Zacks Consensus Estimate of $0.71.The record quarterly performance was driven by strong product revenues, resilient royalty income and continued momentum across its diversified silicon IP business. Rambus, Inc. price-consensus-eps-surprise-chart | Rambus, Inc. Quote President and CEO Luc Seraphin said AI is driving a fundamental shift in computing as inference and agentic AI applications require greater memory capacity, bandwidth and power efficiency. He noted that AI infrastructure is becoming increasingly heterogeneous, combining traditional CPU servers with AI accelerators, creating richer memory content opportunities for Rambus. Product revenues reached a record $99.2 million, rising 22% year over year, supported by leadership in DDR5 register clock drivers (RCDs) and growing contributions from newer products. Management expects another quarter of double-digit product revenue growth in the third quarter. During the quarter, Rambus expanded its DDR5 portfolio with complete DDR5-9600 chipsets for both client and server memory modules. Management also highlighted continued progress in emerging memory technologies, including MRDIMM and LPDDR5X SOCAMM2 chipsets, which are designed to address increasingly specialized AI workloads. Seraphin said these platforms should provide additional growth opportunities as adoption accelerates over the next several years. On the silicon IP side, Rambus secured new design wins across hyperscalers, custom silicon providers and AI semiconductor developers. The company also announced a Tier 1 U.S. hyperscaler selected Rambus' next-generation HBM IP for future AI chips and introduced PCIe 7.0 Switch IP to support next-generation AI networking architectures. Chief financial officer Sumeet Gagneja expects third-quarter revenues to be between $210 million and $216 million, and product revenues to be in the range of $110-$116 million. The company expects non-GAAP earnings per share to be in the band of $0.75-$0.82. Management also increased inventory during the quarter to prepare for future product ramps while addressing longer supplier lead times. During the Q&A session, analysts focused heavily on supply availability and customer demand. Responding to Rosenblatt Securities, Seraphin said Rambus experienced no manufacturing capacity constraints during the second quarter despite ongoing supply-chain tightness. He credited strong supplier relationships for allowing the company to meet customer demand. William Blair asked whether customers were building excess inventory because of constrained memory supply. Seraphin said Rambus has not observed inventory accumulation among customers, adding that the company's own inventory build is strategic and intended to support anticipated demand in the coming quarters. Several analysts sought additional details on the timing of MRDIMM adoption. Management reiterated that MRDIMM represents a significant long-term opportunity because it materially increases Rambus' silicon content per memory module. However, Seraphin said meaningful revenue contributions are more likely to occur in 2027 as new CPU platforms ramp more broadly, with only limited contribution expected in the fourth quarter of 2026. The company also expressed growing confidence in its silicon IP business as hyperscalers increasingly work directly with Rambus during early chip architecture design. According to management, these engagements provide earlier licensing opportunities while strengthening long-term visibility into future AI infrastructure deployments. Although executives acknowledged that supply constraints and platform timing remain important variables, management consistently expressed confidence in Rambus' long-term outlook. Seraphin said expanding DDR5 adoption, higher memory channel counts, increasing companion chip penetration, MRDIMM adoption, and robust silicon IP licensing activity would serve as multiple growth drivers extending well beyond 2026. Management believes AI-driven demand for advanced memory subsystems continues to strengthen the company's competitive positioning across both products and licensing. RMBS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The stock has a Growth Score of B, a Momentum Score of C, a Value Score of F, and a VGM Score of C. The Growth Score reflects favorable earnings growth characteristics, while the VGM Score indicates balanced overall fundamentals across value, growth and momentum factors. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Rambus, Inc. (RMBS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Revenue: $207.4 million, up 20% year-over-year and 15% sequentially. Product Revenue: $99.2 million, up 22% year-over-year and 13% sequentially. Royalties Revenue: $84.2 million. Contract and Other Revenue: $24 million. Non-GAAP Operating Costs: $113.7 million. Operating Expenses: $73.5 million, increased due to higher SG&A expenses. Interest and Other Income: $6.8 million. Non-GAAP Net Income: $84.4 million. Non-GAAP Earnings Per Share: $0.77, up 24% year-over-year and 21% sequentially. Cash, Cash Equivalents, and Marketable Securities: $825 million, up $39 million from Q1. Operating Cash Flow: $61 million. Free Cash Flow: $49 million. Inventory Increase: $16 million. Q3 Revenue Guidance: $210 million to $216 million. Q3 Product Revenue Guidance: $110 million to $116 million. Q3 Royalties Revenue Guidance: $69 million to $75 million. Q3 Contract and Other Revenue Guidance: $25 million to $31 million. Q3 Non-GAAP Operating Costs Guidance: $119 million to $115 million. Q3 Non-GAAP Earnings Per Share Guidance: $0.75 to $0.82. Warning! GuruFocus has detected 5 Warning Signs with SSD. Is RMBS fairly valued? Test your thesis with our free DCF calculator. Release Date: July 27, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Rambus Inc (NASDAQ:RMBS) achieved a new all-time high in revenue and non-GAAP earnings, surpassing $200 million for the first time. The company reported a 22% year-over-year increase in product revenue, driven by strong execution and growing traction in new products. Rambus Inc (NASDAQ:RMBS) expanded its DDR5 portfolio with complete chipsets for DDR5 9600 clients and server memory modules, enhancing its leadership in high-speed memory interface solutions. The company delivered strong cash flow from operations, enabling continued investment in its product roadmap for long-term growth. Rambus Inc (NASDAQ:RMBS) secured key design wins in Silicon IP, including an exciting engagement with a Tier 1 US hyperscaler for next-generation HBM in future AI chips. The company continues to face tightness in the supply chain, with increasing lead times, although no capacity issues were reported in Q2. The contribution from MRDIMM is expected to be minimal in Q4, with more material impact anticipated in 2027. There are concerns about potential over-ordering in the tight memory supply environment, although no signs of inventory buildup at customers were reported. The market for CXL remains fragmented, with many deployments resembling ASIC-like or customer-specific products, limiting Rambus Inc (NASDAQ:RMBS)'s product investment opportunities. Supply constraints are expected to persist into 2027, posing challenges for the industry and potentially impacting Rambus Inc (NASDAQ:RMBS)'s growth. Q: Did Rambus face any capacity issues during the second quarter? A: Luc Seraphin, President, CEO, and Director, stated that Rambus did not experience any capacity issues in Q2. Although there is tightness in the supply chain and increasing lead times, Rambus has strong supplier relationships and is able to meet market demand. Q: Is Rambus involved with China-based CXMT on the IP or product side? A: Luc Seraphin confirmed that Rambus has a license agreement with CXMT, as all companies building memory must have such agreements with Rambus. He expressed that CXMT's success is beneficial for Rambus in the long run. Q: What are Rambus's expectations for the ramp of MRDIMM, and how does it compare to traditional DIMMs? A: Luc Seraphin explained that MRDIMM presents a material opportunity, but its timing depends on platform adoption and server market dynamics. While contributions in Q4 will be minimal, more significant contributions are expected in 2027 as platforms ramp up. Q: Are there any signs of inventory buildup at Rambus's customers, and how is Rambus managing its inventory? A: Luc Seraphin noted that there are no signs of inventory buildup at customer sites. However, Rambus is strategically building inventory for critical products expected to ramp in the coming quarters due to supply chain tightness. Q: How does Rambus view the opportunity for silicon IP business growth, and what is the expected growth rate? A: Luc Seraphin stated that the silicon IP business is expected to grow 10% to 15% annually. The company is confident in this growth due to increasing demand for custom solutions in AI infrastructure and early customer engagements. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved a record $207.4 million in quarterly revenue, marking the first time the company exceeded the $200 million threshold, driven by 22% year-over-year growth in product revenue. Performance was bolstered by the fundamental evolution of AI workloads toward inference and agentic use cases, which require more persistent and memory-intensive infrastructure. Management attributed growth to sustained leadership in DDR5 RCDs and increasing customer adoption of next-generation platforms across both traditional and AI server environments. The company is leveraging its high-speed memory interface expertise to waterfall data center technology into high-performance client systems, specifically for emerging AI PCs. Strategic positioning in Silicon IP remains robust, with a growing number of deep architectural engagements with hyperscalers and custom silicon developers ahead of industry standards being finalized. Operational execution focused on building strategic inventory to mitigate supply chain tightness and ensure supply assurance for upcoming product ramps. Q3 guidance anticipates continued double-digit growth in product revenue, with a sequential increase of 14% at the midpoint, supported by the ongoing transition to DDR5. Management expects a stronger second half of the year compared to the first half, following historical seasonal dynamics and the ramp of new server platforms. The Silicon IP business is projected to maintain a steady growth rate of 10% to 15% annually, driven by the proliferation of custom silicon and high-speed interconnect requirements. Strategic focus for 2027 includes the earnest growth of Gen 5 DDR5, the market shift to 16 channels per CPU, and the initial material contribution from MRDIMM architectures. Guidance methodology remains prudent, accounting for potential delays in platform timing and persistent supply chain tightness expected to last through 2027. Adopted a new financial reporting presentation focusing solely on ASC 606 revenue, as the delta between royalties revenue and licensing billings has become minimal. Inventory increased by $16 million during the quarter, a deliberate strategic move to support future product ramps amid lengthening lead times. Announced a key design win with a Tier 1 U.S. hyperscaler for next-generation HBM in future AI chips, validating the strategic importance of the premium IP portfolio. Maintained a long-term product gross margin target of 60% to 65%, despite quarterly fluctuations driven by product mix and supply constraints. Management expects minimal contribution from MRDIMM in Q4, with more material revenue anticipated in 2027 as CPU platforms ramp in earnest. The company is avoiding overcalling the adoption curve until more feedback is received from the market regarding the mix of MRDIMM versus standard RDIMMs. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed they see no signs of customers over-ordering or building excess inventory despite the tight supply environment. Rambus is proactively building its own strategic inventory for critical products to manage lengthening lead times and ensure delivery for Q3 and Q4 ramps. Rambus views CXL primarily as an interconnect protocol rather than a standalone chip product, focusing its CXL efforts within the Silicon IP business. Management characterized the current CXL product market as fragmented and ASIC-like, preferring to focus product investments on standard, scalable solutions. LPDDR and SOCAMM2 are viewed as complementary, power-efficient options for heterogeneous AI markets rather than a replacement for dominant DDR architectures. While short-term revenue outlook for these architectures is modest, they provide a strategic 'seat at the table' as memory requirements diversify. Licensing revenue for advanced IP like PCIe 7.0 is recognized well ahead of end-product market ramps, often as soon as engagements begin. These early engagements provide the company with 12 to 24 months of visibility into where the broader semiconductor market is heading.

Rambus RMBS reported second-quarter 2026 non-GAAP earnings of 77 cents per share, which increased 24.2% year over year and beat the Zacks Consensus Estimate of 71 cents by 8.45%. Total revenues increased 20.4% year over year to $207.4 million, surpassing the Zacks Consensus Estimate by 4.27%. Rambus' results were driven by record product revenues of $99.2 million, which rose 22% year over year, supported by robust AI and data center demand, as well as continued strength in its high-performance memory interface chips and silicon IP portfolio. Record product revenues reflected continued strength in DDR5 register clock drivers, growing adoption of next-generation memory interface chips and increasing AI-driven server deployments. During the quarter, Rambus introduced complete DDR5 9600 chipsets for both server RDIMMs and client memory modules, extending its leadership in high-speed memory interfaces. Rambus, Inc. price-consensus-eps-surprise-chart | Rambus, Inc. Quote The company also remains on track to capitalize on emerging memory architectures such as MRDIMM and LPDDR5X SOCAMM2 as adoption accelerates. Rambus continued to benefit from robust demand for its silicon IP portfolio, securing new customer engagements across hyperscalers, custom silicon providers and AI semiconductor companies. Management highlighted a significant design win with a Tier-1 U.S. hyperscaler for next-generation High Bandwidth Memory IP designed for future AI chips. The company also expanded its AI connectivity portfolio by introducing PCIe 7 Switch IP supporting 128 GT/s, aimed at next-generation AI scale-up and scale-out architectures requiring higher bandwidth, lower latency and secure data movement. Non-GAAP operating income increased to $93.7 million from $79 million in the year-ago quarter. Non-GAAP operating margin remained strong at 45%, reflecting the company's disciplined execution despite continued investments in product development and growth initiatives. Rambus exited the quarter with $824.9 million in cash, cash equivalents and marketable securities, up from $786.1 million in the previous quarter. The increase was primarily driven by $61.2 million in operating cash flow. The company remains debt-free, providing financial flexibility to continue investing in next-generation chip and IP solutions supporting AI and data-center infrastructure. For the third quarter of 2026, Rambus expects revenues between $210 million and $216 million, including product revenues of $110-$116 million, Royalty revenues of $69-$75 million and contract and other revenues of $25-$31 million. The Zacks Consensus Estimate for third-quarter revenues is currently pegged at approximately $211.6 million, reflecting a year-over-year improvement of 17.9%. The company expects non-GAAP earnings per share between 75 cents and 82 cents. The Zacks Consensus Estimate for third-quarter earnings is currently pegged at 77 cents per share, reflecting a year-over-year improvement of 22.2%. Currently, RMBS carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the broader Zacks Computer and Technology sector include ASE Technology ASX, Bandwidth BAND and Fortinet FTNT. While Bandwidth and Fortinet sport a Zacks Rank #1 (Strong Buy) each, ASE Technology carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here. Shares of ASE Technology have rallied 127% in the year-to-date period. ASX is set to report its second-quarter 2026 results on July 30. Shares of Bandwidth have surged 270% in the year-to-date period. BAND is slated to report its second-quarter 2026 results on July 29. Fortinet shares have gained 92% in the year-to-date period. FTNT is set to report its second-quarter 2026 results on July 29. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Rambus, Inc. (RMBS) : Free Stock Analysis Report Fortinet, Inc. (FTNT) : Free Stock Analysis Report ASE Technology Holding Co., Ltd. (ASX) : Free Stock Analysis Report Bandwidth Inc. (BAND) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Record quarterly revenue of $207.4 million, up 20% year over year, exceeding revenue guidance range GAAP diluted earnings per share of $0.61 and non-GAAP diluted earnings per share of $0.77, exceeding non-GAAP diluted earnings per share guidance range Record product revenue of $99.2 million, up 13% quarter over quarter and 22% year over year Expanded product and IP offerings for next-generation AI systems, including complete chipsets for DDR5 9600 server and client memory modules, and PCIe 7 Switch IP SAN JOSE, Calif., July 27, 2026--(BUSINESS WIRE)--Rambus Inc. (NASDAQ:RMBS), a provider of industry-leading chips and IP making data faster and safer, today reported financial results for the second quarter ended June 30, 2026. Total revenue for the second quarter was $207.4 million, product revenue was $99.2 million, royalties revenue was $84.2 million and contract and other revenue was $24.0 million. GAAP diluted earnings per share was $0.61 and non-GAAP diluted earnings per share was $0.77. The Company also generated $61.2 million in cash from operating activities in the second quarter. Management Commentary "Rambus had an outstanding second quarter, delivering a new all-time high in revenue and non-GAAP earnings, fueled by record product revenue that grew more than 20% year over year," said Luc Seraphin, president and chief executive officer of Rambus. "We continue to execute on our roadmap of high-performance chip and IP solutions to meet the accelerating demands of data center and AI infrastructure. We are well positioned to capitalize on the strong secular trends driven by the rapid expansion of AI inference and agentic workloads, supporting our continued product momentum and long-term profitable growth." GAAP revenue for the quarter was $207.4 million, which exceeded the Company's guidance range of $192 million to $198 million. The Company had product revenue of $99.2 million, royalties revenue of $84.2 million and contract and other revenue of $24.0 million. The Company also had licensing billings of $84.1 million, which is an operational metric that reflects amounts invoiced to our licensing customers during the period, as adjusted for certain differences relating to advanced payments for variable licensing agreements. The Company had total GAAP cost of revenue of $42.0 million and operating expenses of $92.7 million. The Company also had total non-GAAP operating expenses of $113.7 million (including non-GAAP cost of revenue of $40.2 million). The Company had GAAP diluted earnings per share of $0.61 and non-GAAP diluted earnings per share of $0.77. The Company’s basic share count was 108 million shares and its diluted share count was 110 million shares. Cash, cash equivalents, and marketable securities as of June 30, 2026 were $824.9 million, an increase of $38.8 million as compared to March 31, 2026, mainly due to $61.2 million in cash provided by operating activities, partially offset by $14.3 million in payments of taxes related to net share settlement of equity awards and $12.2 million paid for capital expenditures. 2026 Third Quarter Outlook For the third quarter of 2026, the Company expects revenue to be between $210 million and $216 million. The Company also expects product revenue to be between $110 million and $116 million, royalties revenue to be between $69 million and $75 million, and contract and other revenue to be between $25 million and $31 million. Revenue is not without risk and achieving revenue in this range will require that the Company sign customer agreements for various product sales and solutions licensing, among other matters. The Company also expects GAAP operating costs and expenses to be between $137 million and $133 million and non-GAAP operating costs and expenses to be between $119 million and $115 million. The Company expects interest and other income to be $7 million. These expectations also assume a GAAP tax rate of 18.7%, a non-GAAP tax rate of 16% and a diluted share count of 110 million shares, and exclude stock-based compensation expense of $15.7 million, amortization of acquired intangible assets of $1.5 million and other one-time adjustments of $0.8 million. Additionally, the Company expects GAAP diluted earnings per share to be between $0.59 and $0.67 and non-GAAP diluted earnings per share to be between $0.75 and $0.82. Conference Call The Company’s management will discuss the results of the quarter during a conference call scheduled for 2:00 p.m. PT today. The call will be audio, slides will be available online at investor.rambus.com, and a replay will be available for the next week at the following numbers: (800) 770-2030 (domestic) or (+1) 609-800-9909 (international) with ID# 9039474. Non-GAAP Financial Information In the commentary set forth above and in the financial statements included in this earnings release, the Company presents the following non-GAAP financial measures: cost of product revenue, operating expenses, operating income, gross margin, operating margin, net income and diluted net income per share (diluted earnings per share). In computing each of these non-GAAP financial measures, the following items were considered as discussed below: stock-based compensation expense, restructuring charges, acquisition-related costs, amortization of acquired intangible assets, facility closure costs, income tax adjustment, and certain other one-time adjustments. The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations from these results should be carefully evaluated. Management believes the non-GAAP financial measures are appropriate for both its own assessment of, and to show investors, how the Company’s performance compares to other periods. The non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. A reconciliation from GAAP to non-GAAP results is included in the financial statements contained in this release. The Company’s non-GAAP financial measures reflect adjustments based on the following items: Stock-based compensation expense. These expenses primarily relate to employee stock purchase plans, and employee non-vested equity stock and non-vested stock units. The Company excludes stock-based compensation expense from its non-GAAP measures primarily because such expenses are non-cash expenses that the Company does not believe are reflective of ongoing operating results. Additionally, given the fact that other companies may grant different amounts and types of equity awards and may use different valuation assumptions, excluding stock-based compensation expense permits more accurate comparisons of the Company’s results with peer companies. Restructuring charges. These charges include severance, exit costs and other related costs. The Company excludes these charges because such charges are not directly related to ongoing business results and do not reflect expected future operating expenses. Acquisition-related costs. These expenses include all direct costs of certain acquisitions and the current periods’ portion of any retention bonus expense associated with the acquisitions. The Company excludes these expenses in order to provide better comparability between periods as they are related to acquisitions and have no direct correlation to the Company’s operations. Amortization of acquired intangible assets. The Company incurs expenses for the amortization of intangible assets acquired in acquisitions. The Company excludes these items because these expenses are not reflective of ongoing operating results in the period incurred. These amounts arise from the Company’s prior acquisitions and have no direct correlation to the operation of the Company’s core business. Facility closure costs. These charges consist of exit costs associated with building leases that were abandoned. The Company excludes these charges because such charges are not directly related to ongoing business results and do not reflect expected future operating expenses. Income tax adjustment. For purposes of internal forecasting, planning and analyzing future periods that assume net income from operations, the Company estimates a fixed, long-term projected tax rate of approximately 16 percent and 20 percent for 2026 and 2025, respectively, which consists of estimated U.S. federal and state tax rates, and excludes tax rates associated with certain items such as withholding tax, tax credits, deferred tax asset valuation allowance and the release of any deferred tax asset valuation allowance. Accordingly, the Company has applied these tax rates to its non-GAAP financial results for all periods in the relevant years to assist the Company’s planning. On occasion in the future, there may be other items, such as significant gains or losses from contingencies, that the Company may exclude in deriving its non-GAAP financial measures if it believes that doing so is consistent with the goal of providing useful information to investors and management. About Rambus Inc. Rambus delivers industry-leading chips and silicon IP for data-intensive computing systems, focusing on data center and AI infrastructure. With over three decades of advanced semiconductor experience, our products and technologies address the critical bottlenecks between memory and processing to accelerate data-intensive workloads. By enabling greater bandwidth, efficiency and security across next-generation computing platforms, we make data faster and safer. For more information, visit rambus.com. Forward-Looking Statements This release contains forward-looking statements under the Private Securities Litigation Reform Act of 1995, including those relating to Rambus’ expectations regarding business opportunities, the Company’s ability to deliver long-term, profitable growth, product and investment strategies, and the Company’s outlook and financial guidance for the third quarter of 2026 and related drivers, and the Company’s ability to effectively manage market challenges. Such forward-looking statements are based on current expectations, estimates and projections, management’s beliefs and certain assumptions made by the Company’s management. Actual results may differ materially. The Company’s business generally is subject to a number of risks which are described more fully in Rambus’ periodic reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date hereof. View source version on businesswire.com: https://www.businesswire.com/news/home/20260727350508/en/ Contacts Sumeet GagnejaSenior Vice President and Chief Financial Officer(408) [email protected]

Rambus (RMBS) came out with quarterly earnings of $0.77 per share, beating the Zacks Consensus Estimate of $0.71 per share. This compares to earnings of $0.6 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +8.45%. A quarter ago, it was expected that this memory chip designer would post earnings of $0.61 per share when it actually produced earnings of $0.63, delivering a surprise of +3.28%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Rambus, which belongs to the Zacks Electronics - Semiconductors industry, posted revenues of $207.39 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.27%. This compares to year-ago revenues of $170 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Rambus shares have added about 4.5% since the beginning of the year versus the S&P 500's gain of 8.3%. While Rambus has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Rambus was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.77 on $211.6 million in revenues for the coming quarter and $2.95 on $817.3 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Semiconductors is currently in the top 26% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, SkyWater Technology, Inc. (SKYT), is yet to report results for the quarter ended June 2026. This company is expected to post quarterly loss of $0.07 per share in its upcoming report, which represents a year-over-year change of +36.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. SkyWater Technology, Inc.'s revenues are expected to be $148 million, up 150.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Rambus, Inc. (RMBS) : Free Stock Analysis Report SkyWater Technology, Inc. (SKYT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Rambus, Inc.? Here are five stocks we like better. Record second-quarter results: Rambus reported revenue of $207.4 million, up 20% year over year, and non-GAAP earnings of $0.77 per diluted share. Growth was driven by record product revenue, royalties and silicon IP. AI-related demand supports growth: The company cited rising demand for memory capacity, bandwidth and power efficiency, including traction for DDR5 products, future MRDIMM and SOCAMM2 architectures, and a next-generation HBM IP design win with a major U.S. hyperscaler. Positive outlook: Rambus expects third-quarter revenue of $210 million to $216 million and said the second half of 2026 should be stronger than the first, with favorable demand conditions potentially extending into 2027. 3 Stocks Rallying on Micron's Price Boost: Substance or Hype? Rambus (NASDAQ:RMBS) reported record second-quarter fiscal 2026 revenue and non-GAAP earnings, supported by growth in its memory-interface chip business and contributions from royalties and silicon IP. The company’s revenue surpassed $200 million for the first time, while management said demand trends tied to AI infrastructure, CPU-based servers and rising memory requirements continue to support its outlook. Second-quarter revenue totaled $207.4 million, up 20% from a year earlier and 15% sequentially. Non-GAAP net income was $84.4 million, or $0.77 per diluted share, representing year-over-year growth of 24% and sequential growth of 21%. → MarketBeat Week in Review – 07/20- 07/24 5 Reasons Rambus Stock Price Collapse Is One Hot Entry Point “Rambus had an excellent second quarter, delivering a new all-time high in revenue and non-GAAP earnings and beating the high end of our guidance ranges,” Chief Executive Officer Luc Seraphin said. He said the company’s results were driven by record product revenue and diversified revenue streams. Product revenue was $99.2 million, rising 22% year over year and 13% from the prior quarter. Royalties revenue was $84.2 million, while contract and other revenue was $24 million, consisting primarily of silicon IP. Rambus noted that some silicon IP revenue is included in royalties revenue rather than contract and other revenue. → Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit Why Rambus’ Market Reset Might Be the Best News Bulls Get Seraphin attributed product growth to Rambus’ DDR5 registered clock driver, or RCD, business, along with traction in newer products. The company introduced complete chipsets for DDR5 9600 client and server memory modules during the quarter, including a DDR5 9600 RDIMM chipset built around its sixth-generation RCD and PMIC5030 power-management product. The company is also pursuing new memory-module architectures, including MRDIMM and LPDDR5X SOCAMM2. Seraphin said these products are intended to address differing performance, capacity and power requirements as AI infrastructure becomes more varied. → 2 Stocks Built to Thrive If Inflation Refuses to Fade Management expects MRDIMM’s contribution in the fourth quarter to be minimal, with a more material contribution expected in 2027 as CPU platforms ramp. Seraphin said Rambus is continuing to ship products for early customer system builds. On LPDDR-based server modules, Seraphin said the company views SOCAMM as complementary to DDR-based server memory rather than a replacement. DDR is expected to remain dominant in systems requiring server-grade scale, capacity, reliability and serviceability, while LPDDR may be used where power efficiency is particularly important, he said. Rambus said AI workloads are increasing demand for memory capacity, bandwidth, power efficiency and secure connectivity. Seraphin said agentic AI applications are helping drive demand for CPU-based servers used for orchestration, data management and real-time execution. In silicon IP, the company cited customer traction and design wins across hyperscalers, custom silicon companies and AI semiconductor developers. Rambus disclosed a design win with a tier-one U.S. hyperscaler for next-generation HBM in future AI chips. Seraphin clarified during the question-and-answer session that the win is an IP opportunity, rather than a product-chip design win, and follows the company’s licensing business model. The company also introduced PCIe 7 switch IP supporting 128 gigatransfers per second. Seraphin said Rambus can recognize licensing revenue before its customers’ end products reach the market, because the company engages with customers early in their chip-development process. Management reiterated its view that the silicon IP business can grow 10% to 15% annually. Seraphin said confidence in that target has increased as hyperscalers take a more direct role in defining their own system architectures and as customers seek advanced memory, interconnect and security IP. Rambus said it did not experience capacity constraints during the second quarter, although Seraphin said the company continues to see supply-chain tightness and lengthening lead times. He said Rambus has developed strong supplier relationships and has been able to meet market demand. The company increased inventory by $16 million during the quarter. Management said the move was intended to support expected product ramps and provide customers with supply assurance as supply conditions remain tight. Seraphin said Rambus has not seen signs that customers are building excess inventory, but is itself holding strategic inventory for products expected to contribute to growth in the coming quarters. Rambus ended the quarter with $825 million in cash equivalents and marketable securities, up $39 million from the first quarter. Operating cash flow was $61 million, capital expenditures were $12 million, and free cash flow was $49 million. For the third quarter, Rambus forecast revenue of $210 million to $216 million. Product revenue is expected to be $110 million to $116 million, which would represent a 14% sequential increase at the midpoint. The company projected royalties revenue of $69 million to $75 million and contract and other revenue of $25 million to $31 million. Rambus expects third-quarter non-GAAP earnings per share of $0.75 to $0.82, based on an assumed 16% tax rate and 110 million diluted shares outstanding. Chief Financial Officer Sumeet Gagneja, who joined Rambus recently and made his first earnings-call appearance, said the company will now focus its results and guidance on an ASC 606 revenue basis. Rambus had previously disclosed licensing billings as an operating metric, but Gagneja said the difference between royalties revenue and licensing billings has become minimal. Management said it expects the second half of 2026 to be stronger than the first half, while continuing to guide on a quarter-by-quarter basis because of platform-ramp timing and supply constraints. Seraphin said the company sees favorable demand conditions extending into 2027, including broader DDR5 adoption, more memory channels per CPU, a potential MRDIMM ramp and continued growth in companion-chip products. Rambus Inc is a technology licensing company specializing in semiconductor and system-level interface solutions. Founded in 1990 by Stanford University researchers Mike Farmwald and Mark Horowitz, Rambus established its headquarters in Sunnyvale, California. The company initially gained prominence by developing high-speed DRAM interface technology and securing a broad patent portfolio covering memory architecture, data signaling and power management innovations. Today, Rambus licenses its proprietary intellectual property (IP) to semiconductor companies, original equipment manufacturers (OEMs) and system integrators worldwide. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Rambus Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.