2024-04-15 17:56:44 ET
Summary
- Rambus is a semiconductor company that produces interface chipsets and technology for high bandwidth memory which are bundled with Nvidia's GPU accelerators.
- The company's share price has underperformed the iShares Semiconductor ETF since the beginning of 2024, probably due to competition and low demand for traditional or non-AI server components.
- Competitor Micron has entered the market with more powerful HBM chips, potentially impacting Rambus' sales and revenue projections.
- The underlying theme of this thesis is that amid all the enthusiasm about AI and the semiconductor industry recovering in 2024, it is also important to exercise caution as spending patterns change in uncertain economic conditions.
As its name suggests Rambus (RMBS) is a semiconductor company that produces interface (or bus) chipsets or those located between the memory modules and the processors used in servers. It also develops the technology that some manufacturers use to build high bandwidth memory for bundling with Nvidia's (NASDAQ: NVDA ) GPU accelerators which explains why its share price has surged since September 2022....
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For further details see:
Rambus: Facing Competition And Lower Demand