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Investing.com -- Rambus Inc. (NASDAQ:RMBS) stock soared 16% Monday after Baird analyst Tristan Gerra raised his price target on the semiconductor company to $120 from $90 while maintaining an Outperform rating.
The new price target represents a Street high for Rambus, which closed at $86 on Friday. Gerra cited multiple product revenue growth catalysts expected in the second half of 2026 as the basis for his more bullish outlook.
According to Gerra’s report, server DRAM demand bit growth is projected to accelerate to 30% in 2026, up from an expected 25% growth in 2025. This acceleration benefits the AI semiconductor supply chain, with RDIMM (Registered Dual In-Line Memory Module) unit growth expected to reach high-teens in 2026 compared to mid-teens in 2025.
The analyst highlighted Rambus’ expanding total addressable market (TAM), which now exceeds $2.2 billion. This expansion comes from new opportunities including companion chips and MRDIMM (Multi-Capacity Rank Dual In-Line Memory Module), with the latter alone adding $600-700 million to Rambus’ TAM.
Rambus is positioned for multi-year growth following its transition from DDR4 to DDR5 in 2024, which doubled the company’s market share. Growth in the second half of 2025 is expected to be driven by the ongoing transition from eight to 12 channels and the initial ramp of companion chips.
Gerra noted that Rambus maintains a favorable competitive position, as it is one of only two companies offering a full chipset, creating customer stickiness and benefiting from first-mover advantage.
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