| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 19 | 37.2x | 17.3x | Bottom tier | |
Growth | 77 | 17.3% | 7.1% | Top tier | |
Quality | 96 | 17.2% | 4.5% | Top tier | |
Safety | 95 | — | 2.6x | Top tier | |
Capital Return | 21 | 0.00% | 0.06% | Bottom tier | |
Momentum | 33 | 8.6% | -1.6% | Bottom tier | |
Sentiment | 41 | 5 | 3 | Around median |
The floor: what the company is worth if growth stopped today
81% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 5.00% as of 2026-10-23. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Rambus Inc. develops silicon chips and intellectual property that serve memory, connectivity, and security systems in data centers and artificial intelligence infrastructure. Its revenue comes from three interconnected streams: sales of memory chips such as DDR5 RCD and companion chips, royalty revenue, and contract and other revenue primarily related to silicon intellectual property; a portion of the income from this intellectual property is also recorded within royalties. Its portfolio includes DDR5-9600 chips for servers and clients, MRDIMM, LPDDR5X SOCAMM2, and HBM, PCIe 7.0, security, and connectivity intellectual property.
In the second quarter of fiscal 2026, Rambus recorded record revenue of $207.4 million, up 20% year over year and 15% sequentially, surpassing $200 million for the first time. Product revenue reached $99.2 million, or approximately 47.8% of the total, and increased 22% year over year and 13% sequentially; royalties reached $84.2 million, or approximately 40.6%, while contract and other revenue totaled $24 million, or approximately 11.6%. The company generated non-GAAP net income of $84.4 million and non-GAAP earnings per share of $0.77, up 24% year over year, while total non-GAAP operating costs, including cost of sales, were $113.7 million.
Rambus ended the second quarter of fiscal 2026 with cash, cash equivalents, and marketable securities of $825 million, an increase of $39 million from the previous quarter. It generated $61 million in operating cash flow and $49 million in free cash flow, after capital expenditures of $12 million. Inventory increased by $16 million to support expected production increases and strengthen supply assurance for customers amid extended lead times.
The average analyst price target is $161.75, within a relatively wide range of $145 to $172, with a consensus rating of “Buy.” The average is only approximately 7% below the top of the 52-week range of $174.1, and the highest target nearly matches that peak, reflecting elevated expectations for continued product and intellectual property growth while supply risks and MRDIMM timing remain.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
Rambus revenue in the second quarter of fiscal 2026 reached a record $207.4 million, up 20% year over year and 15% sequentially. Products led the performance with revenue of $99.2 million and year-over-year growth of 22%, alongside $84.2 million in royalties and $24 million in contract and other revenue. Non-GAAP net income reached approximately $84.4 million, with earnings per share rising 24% year over year to $0.77.
The company expects revenue of between $210 million and $216 million in the third quarter of fiscal 2026. This includes $110–116 million from products, $69–75 million from royalties, and $25–31 million from contract and other revenue. It expects non-GAAP operating income of between $91 million and $101 million and earnings per share of between $0.75 and $0.82, assuming a tax rate of 16% and 110 million diluted shares.
Automated analysis for informational purposes only — not investment advice.
Management said MRDIMM's contribution in the fourth quarter of fiscal 2026 will be limited because adoption is tied to the timing of processor platform launches and server manufacturers' choice between MRDIMM and traditional DIMM. Rambus expects a more meaningful contribution in fiscal 2027 when processor vendor platforms expand in the market. The opportunity is significant because, according to management, MRDIMM carries four times the silicon content per module, but the adoption curve is not yet clear.
New products represented a low-teens percentage of product revenue in the second quarter of fiscal 2026, and management expects them to reach a mid-teens percentage by the end of the fourth quarter of fiscal 2026. The portfolio includes DDR5-9600 chipsets for servers and clients, companion chips, MRDIMM, and LPDDR5X SOCAMM2. Adoption remains gradual because products undergo qualification processes with customers, their customers, and the broader ecosystem, and management does not expect an immediate jump in contribution.
The main operating risks are supply chain tightness and extended lead times, conditions that management expects to persist throughout fiscal 2027. MRDIMM's contribution also depends on the timing of processor platforms, while product gross margin may fluctuate within the long-term model of 60% to 65% depending on mix and supply. From a valuation perspective, the consensus target of $161.75 is close to the top of the 52-week range of $174.1, increasing the stock's sensitivity to any execution delay.