"Rambus ( NASDAQ: RMBS) reports fourth-quarter 2025 results Monday after the bell with consensus expecting continued double-digit revenue growth driven by DDR5 product strength and steady licensing demand. The company is coming off a quarter marked by record product revenue and strong cash generation, reinforcing confidence in its hybrid chip-plus-IP model. The stock is already up 20% so far in 2026 as investors look to gauge how durable DDR5 momentum remains and how quickly next-generation platforms like MRDIMM begin to contribute."
"Consensus implies roughly 20% revenue growth in FY2025 and mid-to-high teens growth into FY2026, supported by expanding DDR5 content, higher server memory density, and incremental contributions from new companion chips. Key Areas to Watch DDR5 RCD Share Gains and Product MixManagement highlighted continued market share expansion in DDR5 RCDs, with server DIMM growth outpacing the broader market. Investors will watch for commentary on second- and third-generation DDR5 mix, pricing lift from generational transitions, and whether share can continue to push toward the upper end of the 40-50% target range."
"PMICs, clock drivers, and other companion chips are still a mid-single-digit percentage of product revenue but are scaling steadily. Management has emphasized qualification progress across multiple platforms, with expectations for continued sequential growth rather than a step-function ramp. Execution here is key to sustaining >40% product revenue growth trajectories. MRDIMM Timing and Content OpportunityMRDIMM represents a sizable incremental TAM, with management estimating roughly $600 million longer term. However, volume ramps depend on Intel and AMD platform rollouts, with meaningful contribution expected late 2026 into 2027."
Rambus is positioned for continued double-digit revenue growth driven by strong DDR5 product demand and steady licensing. Consensus models imply roughly 20% revenue growth in FY2025 and mid-to-high teens growth into FY2026, supported by expanding DDR5 content, higher server memory density, and incremental companion-chip contributions. DDR5 RCD share gains—especially in server DIMMs—and pricing benefits from generational transitions are central to achieving a 40–50% share target. Companion chips such as PMICs and clock drivers remain a mid-single-digit share of product revenue but are scaling through staged platform qualifications. MRDIMM represents an estimated $600 million incremental TAM with meaningful ramps expected late 2026 into 2027.
Read at 24/7 Wall St.
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