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Bull of the Day: Rambus (RMBS)

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The latest craze to hit the market this year is Artificial Intelligence, AI. The ground-breaking technology is causing not just ripples, but seismic waves across the market. It has helped kickoff a rally that sent NVIDIA through the roof. It is also bleeding over to many other names in the semiconductor industry. Among them, is today’s Bull of the Day.

Today’s Bull of the Day is Rambus (RMBS - Free Report) ). Rambus is an American technology company that designs, develops, and licenses chip interface technologies and architectures used in digital electronic products. The company's primary business model is based on developing and licensing intellectual property related to memory technologies for semiconductors, which are then used in consumer, enterprise, and industrial applications.

Currently, Rambus is a Zacks Rank #2 (Buy). The reason for the favorable Zacks Rank is that recent earnings estimate revisions have been coming into the upside. Over the last thirty days, analysts have pushed up their estimates for the current year and next year. The bullish moves have increased our Zacks Consensus Estimates for the current year from $1.74 to $1.78 while next year’s numbers are up from $2.04 to $2.21.

That represents earnings growth of 1.71% this year, swelling to 24.16% for next year. That comes on revenue growth of 4.87% for the current year and 18.7% for next year.

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Taking a look at the Price, Consensus and EPS Surprise Chart, you can see the consistent year-over-year moves higher in both the price and the earnings. Earnings growth has been not only solid since 2020, but there has been a pretty consistent move higher in those estimates throughout the course of the year. FY2024 estimates now seem to be taking off, helping pull the price along with it.


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