Upside case
Bull case
$177+25.6%
RMBS would need investors to value it at roughly 60x earnings — about 12x more generous than today's 48x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewBuyUpdated Jun 18, 2026
Rambus Inc. (RMBS) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Buy
Covering
14
analysts
11 bullish · 0 bearish · 14 covering RMBS
Strong Buy
0
Buy
11
Hold
3
Sell
0
Strong Sell
0
Consensus Target
$136
-3.9% vs today
Scenario Range
$85 – $177
Model bear to bull value window
Coverage
14
Published analyst ratings
Valuation Context
47.5x
Forward P/E · Market cap $15.3B
RMBS price targets
Three scenarios for where RMBS stock could go
Current
~$141
Confidence
45 / 100
Updated
Jun 18, 2026
Where we are now
Current · $141
Bear
$85
Base
$135
Bull
$177
Market caseClosest to today
Base case
$135-4.7%
This is close to how the market is already pricing RMBS — at roughly 45x forward earnings. No dramatic re-rating needed, just steady execution on the core business.
Stress case
Bear case
$85-39.9%
If investor confidence fades or macro conditions deteriorate, a 19x multiple contraction could push RMBS down roughly 40% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Rambus Inc.
RMBS · NASDAQTechnologySemiconductorsDecember year-end
Rambus is a semiconductor technology company that designs and licenses memory interface chips and security IP solutions. It generates revenue through semiconductor product sales — primarily DDR memory interface chips — and licensing its extensive patent portfolio covering memory architecture and high-speed interfaces. The company's key advantage is its foundational memory technology patents, which create a licensing moat in the semiconductor industry.
Market Cap
$15.3B
Revenue TTM
$721M
Net Income TTM
$230M
Net Margin
31.9%
RMBS Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
50%Exceptional
12 quarters tracked
Revenue Beat Rate
42%Exceptional
vs consensus estimates
Avg EPS Surprise
+0.9%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 3 of 4Q3 2025
EPS
$0.60/$0.61
Revenue
$172M/$176M
Q4 2025
EPS
$0.63/$0.63
Revenue
$179M/$176M
Q1 2026
EPS
$0.68/$0.68
Revenue
$190M/$188M
Q2 2026
EPS
$0.63/$0.61
Revenue
$180M/$180M
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $0.60/$0.61 | -1.6% | $172M/$176M | -2.0% |
| Q4 2025 | $0.63/$0.63 | +0.0% | $179M/$176M | +1.4% |
| Q1 2026 | $0.68/$0.68 | +0.0% | $190M/$188M | +1.1% |
| Q2 2026 | $0.63/$0.61 | +3.3% | $180M/$180M | +0.1% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$857M
+18.9% YoY
FY2
$985M
+14.9% YoY
EPS Outlook
FY1
$2.62
+25.0% YoY
FY2
$2.99
+14.1% YoY
Trailing FCF (TTM)$335M
FCF Margin: 46.5%
Next Earnings
July 27, 2026
Expected EPS
$0.71
Expected Revenue
$199M
RMBS beat EPS estimates in 3 of 4 tracked quarters. A strong delivery record supports forward estimate credibility.
RMBS Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $708M
Product Mix
Latest annual revenue by segment or product family
Product Revenue
49.1%
+40.9% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
KOREA, REPUBLIC OF
46.5%
+66.7% YoY
Tap, hover, or focus a slice to inspect segment detail.
Product Revenue is the largest disclosed segment at 49.1% of FY 2025 revenue, up 40.9% YoY.
KOREA, REPUBLIC OF is the largest reported region at 46.5%, up 66.7% YoY.
RMBS Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Cheap versus peers
Fair value est. $578 — implies +309.1% from today's price.
Upside to Fair Value
309.1%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
RMBS
66.9x
vs
S&P 500
24.4x
+174% premium
vs Technology Trailing P/E
RMBS
66.9x
vs
Technology
29.0x
+131% premium
vs RMBS 5Y Avg P/E
Today
66.9x
vs
5Y Average
70.5x
5% discount
Forward PE
47.5x
S&P 500
18.8x
+153%
Technology
22.3x
+113%
5Y Avg
—
—
Trailing PE
66.9x
S&P 500
24.4x
+174%
Technology
29.0x
+131%
5Y Avg
70.5x
-5%
PEG Ratio
—
S&P 500
1.66x
—
Technology
1.51x
—
5Y Avg
—
—
EV/EBITDA
52.0x
S&P 500
15.2x
+242%
Technology
16.6x
+213%
5Y Avg
37.9x
+37%
Price/FCF
45.8x
S&P 500
20.7x
+121%
Technology
19.2x
+139%
5Y Avg
27.8x
+65%
Price/Sales
21.6x
S&P 500
3.1x
+598%
Technology
2.4x
+785%
5Y Avg
12.0x
+80%
Dividend Yield
—
S&P 500
1.91%
—
Technology
1.11%
—
5Y Avg
—
—
| Metric | RMBS | S&P 500 | Technology | 5Y Avg RMBS |
|---|---|---|---|---|
| Forward PE | 47.5x | 18.8x+153% | 22.3x+113% | — |
| Trailing PE | 66.9x | 24.4x+174% | 29.0x+131% | 70.5x |
| PEG Ratio | — | 1.66x | 1.51x | — |
| EV/EBITDA | 52.0x | 15.2x+242% | 16.6x+213% | 37.9x+37% |
| Price/FCF | 45.8x | 20.7x+121% | 19.2x+139% | 27.8x+65% |
| Price/Sales | 21.6x | 3.1x+598% | 2.4x+785% | 12.0x+80% |
| Dividend Yield | — | 1.91% | 1.11% | — |
RMBS trades above S&P 500 benchmarks on 5 of 5 measured multiples — commands a broad premium across most valuation dimensions.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolRMBS Financial Health
Verdict
Exceptional
RMBS generates $335M in free cash flow at a 46.5% margin — 17.1% ROIC signals a durable competitive advantage.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$721M
Revenue Growth
TTM vs prior year
+19.1%
Gross Margin
Gross profit as a share of revenue
77.0%
Operating Margin
Operating income divided by revenue
35.9%
Net Margin
Net income divided by revenue
31.9%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$2.10
Free Cash Flow (TTM)
Cash generation after capex
$335M
FCF Margin
FCF as share of revenue — the primary cash quality signal
46.5%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
17.1%
ROA
Return on assets, trailing twelve months
15.5%
Cash & Equivalents
Liquid assets on the balance sheet
$183M
Net Cash
Cash exceeds total debt — no net leverage
$139M
Debt Serviceability
Net debt as a multiple of annual free cash flow
Net cash ✓
ROE
Return on equity, trailing twelve months
17.4%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
0.0%
Dividend
—
Buyback
0.0%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$7M
Dividend / Share
Annualized trailing dividend per share
—
Payout Ratio
Share of earnings distributed as dividends
—
Shares Outstanding
Declining as buybacks retire shares
108M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt).
Open full ratios pageRMBS Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated June 18, 2026
High Risk
Volatility Risk
High beta of 1.82 indicates the stock is 82% more volatile than the market, leading to larger drawdowns during corrections.
High Risk
Valuation Risk
Trailing P/E of 64.2x prices in significant growth, making the stock vulnerable to sharp selloffs on any earnings miss.
Medium
Market Sentiment
Consensus target price implies -6.7% downside, reflecting cautious analyst sentiment.
Medium
Revenue Concentration
Dependence on specific projects (e.g., 'unique project since 2011') could create instability if projects are discontinued.
Lower
Fundamental Strength
Strong fundamentals with 33.2% net profit margin and 4.3% ROE provide some downside protection.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why RMBS Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated June 18, 2026
Strong revenue growth
Rambus reported record annual product revenue of $347.8M for 2025, up 41% YoY, alongside record annual cash from operations of $360.0M.
Operating momentum
The business is showing real operating momentum with Q4 2025 revenue of $190.2M and product revenue of $96.8M.
Advanced compute demand
Fundamental analysis suggests advanced compute systems need more than raw processing power, positioning Rambus favorably.
Attractive valuation metrics
As of February 19th, Rambus's trailing P/E was 48.33, potentially indicating growth potential at current valuation levels.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
RMBS Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$141.17
52W Range Position
71%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$58.82
+140.0% from the low
52-Week High
$174.10
-18.9% from the high
1 Month
+14.07%
3 Month
+51.28%
YTD
+42.2%
1 Year
+133.1%
3Y CAGR
+33.1%
5Y CAGR
+44.7%
10Y CAGR
+27.9%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
RMBS vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
47.5x
vs 92.9x median
-49% below peer median
Revenue Growth
+18.9%
vs +9.7% median
+95% above peer median
Net Margin
31.9%
vs -6.1% median
+620% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
RMB RMBS Rambus Inc. | $15.3B | 47.5x | +18.9% | 31.9% | Buy | -3.9% |
SSN SSNC SS&C Technologies Holdings, Inc. | $15.8B | 9.5x | +9.7% | 12.6% | Buy | +44.0% |
IPG IPGP IPG Photonics Corporation | $5.0B | 92.9x | +3.6% | 2.8% | Buy | +28.4% |
CEV CEVA CEVA, Inc. | $1.4B | 94.2x | +3.6% | -10.5% | Buy | -8.7% |
SLA SLAB Silicon Laboratories Inc. | $7.2B | 79.4x | +13.1% | -6.1% | Buy | -3.7% |
SIT SITM SiTime Corporation | $19.2B | 92.9x | +26.0% | -6.4% | Buy | -8.9% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
RMBS Dividend and Capital Return
RMBS does not currently return meaningful capital to shareholders.
Dividend UnknownFCF Unknown
Total Shareholder Yield
0.0%
Dividend + buyback return per year
Buyback Yield
0.0%
Dividend Yield
—
Payout Ratio
—
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$0.00
Growth Streak
Consecutive years of dividend increases
0Y
3Y Div CAGR
—
5Y Div CAGR
—
Ex-Dividend Date
—
Payment Cadence
—
0 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$7M
Estimated Shares Retired
50.4K
Approx. Share Reduction
0.0%
Shares Outstanding
Current diluted share count from the screening snapshot
108M
FAQ
7 questionsRMBS Investor Questions
Common questions answered from live analyst data and company financials.
01Is Rambus Inc. (RMBS) stock a buy or sell in 2026?
Rambus Inc. (RMBS) is rated Buy by Wall Street analysts as of 2026. Of 14 analysts covering the stock, 11 rate it Buy or Strong Buy, 3 rate it Hold, and 0 rate it Sell or Strong Sell. The consensus 12-month price target is $136, implying -3.9% from the current price of $141. The bear case scenario is $85 and the bull case is $177.
02What is the RMBS stock price target for 2026?
The Wall Street consensus price target for RMBS is $136 based on 14 analyst estimates. The high-end target is $172 (+21.8% from today), and the low-end target is $90 (-36.2%). The base case model target is $135.
03Is Rambus Inc. (RMBS) stock overvalued in 2026?
RMBS trades at 47.5x times forward earnings. The stock trades at a notable premium to the broad market, which is typical for businesses with strong free cash flow and above-average growth expectations. Based on current multiples versus the peer group, the relative model signals cheap versus peers. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Rambus Inc. (RMBS) stock in 2026?
The primary risks for RMBS in 2026 are: (1) Volatility Risk — High beta of 1. (2) Valuation Risk — Trailing P/E of 64. (3) Market Sentiment — Consensus target price implies -6. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Rambus Inc.'s revenue and earnings forecast?
Analyst consensus estimates RMBS will report consensus revenue of $857M (+18.9% year-over-year) and EPS of $2.62 (+25.0% year-over-year) for the upcoming fiscal year. The following year, analysts project $985M in revenue.
06When does Rambus Inc. (RMBS) report its next earnings?
Rambus Inc. is expected to report its next earnings on approximately 2026-07-27. Consensus expects EPS of $0.71 and revenue of $199M. Over recent quarters, RMBS has beaten EPS estimates 50% of the time.
07How much free cash flow does Rambus Inc. generate?
Rambus Inc. (RMBS) generated $335M in free cash flow over the trailing twelve months — a free cash flow margin of 46.5%. RMBS returns capital to shareholders through and share repurchases ($7M TTM).