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Jim Cramer Backs Rambus Amidst AI Demand
5 Jul
Summary
- Rambus shares surged 71% in the past year.
- Baird downgraded Rambus to Neutral due to DRAM shortages.
- Jim Cramer still sees value, calling Rambus a 'good one'.
Rambus Inc. (NASDAQ:RMBS), a key player in semiconductors supplying DDR5 memory chips, has experienced substantial growth, with its shares up 71% over the past year and 13% year-to-date as of July 5, 2026. However, April saw a notable downturn, with the stock closing 21% lower on April 28, 2026.
This decline followed Baird's downgrade of Rambus to Neutral from Outperform, setting a $120 price target. Baird cited concerns about a potential slowdown in RDIMM growth next year due to DRAM shortages. Despite these headwinds, Baird acknowledged that increased demand for CPUs driven by agentic AI could still benefit the firm.
Earlier in April, Rambus reported solid financial results, with $180 million in revenue and $59.9 million in net income. Esteemed financial commentator Jim Cramer expressed his confidence in Rambus on Mad Money, highlighting its consistently strong technology and attractive valuation relative to its growth prospects, ultimately giving it his "blessing."
