Rambus RMBS shares rallied 10.1% in the last trading session to close at $107.38. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 40% gain over the past four weeks.
The optimism surrounding the stock can be attributed to Rambus’ strength in DDR5, expanding companion chips and PMICs, AI-driven demand for HBM4 and PCIe 7.0, MRDIMM opportunities, client PC expansion, strong silicon IP momentum, and robust cash generation fueling sustained growth
This memory chip designer is expected to post quarterly earnings of $0.62 per share in its upcoming report, which represents a year-over-year change of +24%. Revenues are expected to be $175 million, up 19.2% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Rambus, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on RMBS going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Rambus is part of the Zacks Electronics - Semiconductors industry. Navitas Semiconductor Corporation NVTS, another stock in the same industry, closed the last trading session 4.2% higher at $6.73. NVTS has returned 3.4% in the past month.
For Navitas Semiconductor, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.05. This represents a change of +16.7% from what the company reported a year ago. Navitas Semiconductor currently has a Zacks Rank of #3 (Hold).
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Rambus, Inc. (RMBS): Free Stock Analysis Report Navitas Semiconductor Corporation (NVTS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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