Update shared on 16 Nov 2025
Rambus has seen its average analyst price target increase significantly. Figures now range from $114 to $130 per share, as analysts point to robust demand in data center DRAM and multiple growth catalysts supporting stronger revenue and earnings projections.
Analyst Commentary
Recent analyst research reflects growing optimism about Rambus, with a marked increase in price targets and strong commentary on the company’s prospects in the data center and memory sectors.
Bullish Takeaways
- Bullish analysts highlight Rambus' expanding leadership in the data center DRAM market. They emphasize its role as a pure-play provider with a broad portfolio.
- Recent surges in the stock price and upward price target revisions are attributed to increased investor confidence. This stems from robust growth signals in the memory market and strategic IP positioning for AI inferencing.
- Raised revenue and earnings projections, along with expectations for substantial free cash flow, are seen as strong justifications for higher valuations.
- Forecasts indicate sustained demand for Rambus' products well into 2026 and 2027. This is particularly notable as data center deployment momentum continues and registered dual in-line memory module growth accelerates.
Bearish Takeaways
- Bearish analysts caution that Rambus’ future growth is heavily reliant on continued expansion in the data center DRAM market and ongoing successful execution in strategic IP for AI applications.
- There is concern that aggressive revenue and EPS growth projections could be challenged if market dynamics or demand trends weaken.
- Potential competitive pressures, despite a currently favorable landscape, represent a risk to Rambus' premium valuation if rivals begin to gain ground.
- Some caution persists regarding the sustainability of recent stock price gains given how quickly expectations have shifted.
What's in the News
- Rambus completed its share repurchase program, buying back a total of 14,437,037 shares, or 13.01% of shares outstanding, for $462.67 million. The buyback was initiated in November 2020 (Key Developments).
- The company has issued earnings guidance for the fourth quarter of 2025, expecting total revenue between $184 million and $190 million. Licensing billings are projected at $60 million to $66 million, royalty revenue at $59 million to $65 million, product revenue at $94 million to $100 million, and contract and other revenue at $25 million to $31 million (Key Developments).
- Rambus was added to the PHLX Semiconductor Sector Index, reflecting increased recognition in the semiconductor industry (Key Developments).
Valuation Changes
- Fair Value: Remains unchanged at $115.88 per share.
- Discount Rate: Increased slightly from 10.10% to 10.51%.
- Revenue Growth: Remains steady at 18.91% year over year.
- Net Profit Margin: Remains unchanged at 38.05%.
- Future P/E: Increased from 39.20x to 39.63x.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.