RMBS Stock Recorded Its Worst Day In Over A Decade – Why Are Analysts Still Bullish?

• Evercore ISI raised its price target on Rambus to $172 from $119 and maintained an ‘Outperform’ rating, according to The Fly.
• Evercore sees the stock’s pullback as a buying opportunity and expects demand driven by Agentic AI in CPUs to support growth over the coming quarters.
• Jefferies said that while the underlying demand remains strong, near-term growth could be limited by supply constraints.

Shares of Rambus Inc. (RMBS) plunged nearly 25% on Tuesday, marking their sharpest drop since October 2015, as investors reacted to disappointing first-quarter earnings miss that rattled confidence in the chipmaker’s near-term outlook.

The company’s diluted earnings came in at $0.55 per share, below Wall Street’s $ 0.64-per-share estimate, according to Fiscal.ai data. However, its $180.2 million revenue was in line with consensus estimates.

In the earnings call, the company guided to revenue of $192 million to $198 million in the second quarter (Q2) and earnings of $0.65 to $0.73 per share (EPS).

Analysts Remain Bullish On Long-Term Growth

Evercore ISI raised its price target on Rambus to $172 from $119 and maintained an ‘Outperform’ rating, according to The Fly. This implies an upside potential of 60% from current levels. The brokerage also raised its long-term earnings estimates, expecting EPS of $5.76 in 2027 and $9.06 in 2028.

Evercore sees the stock’s pullback as a buying opportunity and expects demand driven by Agentic AI in CPUs to support growth over the coming quarters.

Meanwhile, Jefferies raised its price target to $145 from $120 and maintained a ‘Buy’ rating, saying the pullback is a buying opportunity given the intact long-term outlook. Analyst Blayne Curtis described Q1 results as solid, adding that while the underlying demand remains strong, near-term growth could be limited by supply constraints.

However, Baird warned that growth in registered dual in-line memory module (DIMM) could slow next year due to a tightening of dynamic random access memory (DRAM) supply, with shortages likely to last into 2027. It also noted that sharply rising DRAM prices could weigh on DIMM demand.

How Did Retail Traders React?

RMBS shares generated strong buzz on Stocktwits, with message volumes surging nearly 1,700% over a 24-hour period. Retail sentiment remained in the ‘extremely bullish’ territory. RMBS was also among the top trending tickers on the platform.

One user called the sell-off an “overreaction.”

Another user said the real test for Rambus’ earnings will be in late 2026/2027 as “advanced DDR5 controllers move from design to high-volume production.”

Year-to-date, the stock has gained more than 17%.

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