Baird is bullish on this data center play, says it can rally 60%
Semiconductor company Rambus is exposed to the key tailwinds for the chip industry in 2025, according to Baird. Analyst Tristan Gerra initiated coverage with an outperform rating and $90 price target, which is 58.3% higher than Monday’s close. The company manufactures DDR memory interface chips and creates silicon IP solutions used across data centers, cars and government functions. “Rambus’ technology and IP is central to the AI-driven performance increase in data centers, with first-to market solutions addressing performance bottlenecks between processor and memory,” Gerra wrote in a note. “Rambus should be a core holding within the AI-enabling memory technologies investment thesis,” the analyst added. Gerra forecasts strong secular revenue growth for Rambus as bandwidth requirements continue to rise for chips. The company has a $1.35 billion data center chipset opportunity, according to Baird’s forecasts. Although shares have soared nearly 35% quarter to date, the stock is down 16.7% in 2024. RMBS YTD mountain Rambus shares in 2024
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