Overview

* Rambus ( RMBS ) Q2 revenue and net income rise yr/yr

* Record product revenue of $81.3 mln, up 43% yr/yr

* Generated record cash from operations of $94.4 mln

Outlook

* Rambus ( RMBS ) expects Q3 product revenue between $87 mln and $93 mln

* Company sees Q3 licensing billings between $58 mln and $64 mln

* Rambus ( RMBS ) anticipates Q3 royalty revenue of $57 mln to $63 mln

* Company projects Q3 operating costs between $115 mln and $111 mln

Result Drivers

* CHIP BUSINESS - Rambus ( RMBS ) attributes strong Q2 performance to its chip business, particularly DDR5 memory interface chips

* HIGH-PERFORMANCE COMPUTING - Increased demand for high-performance computing and AI infrastructure driving growth

* PRODUCT TRACTION - Growing traction for new products contributing to record product revenue

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 EPS $0.53

Q2 Net $57.90

Income mln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the semiconductors peer group is "buy"

* Wall Street's median 12-month price target for Rambus Inc ( RMBS ) is $71.31, about 11.9% above its July 25 closing price of $62.85

* The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 20 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)