Is Rambus Stock a Buy After Investment Firm Informed Momentum Initiated a Big Position?
Key Points
Informed Momentum purchased 89,201 shares in Rambus; net position change estimated at ~$9.14 million.
The Rambus position represents 1.05% of reported 13F assets under management.
Post-trade stake stands at 89,201 shares, valued at $9.14 million as of September 30, 2025.
Rambus becomes Informed Momentum’s 5th-largest holding following the disclosure.
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What happened
According to a filing with the Securities and Exchange Commission dated November 14, 2025, Informed Momentum Co LLC initiated a new position in Rambus (NASDAQ:RMBS) during the third quarter. The fund acquired 89,201 shares, resulting in a reported quarter-end value of $9.14 million.
What else to know
This is a new position for Informed Momentum, representing 1.05% of its $872.25 million in reportable U.S. equity assets as of September 30, 2025.
Top five holdings after the quarter:
- NASDAQ:CRDO: $12.93 million (1.5% of AUM)
- NASDAQ:KTOS: $12.49 million (1.4% of AUM)
- NASDAQ:STRL: $9.89 million (1.1% of AUM)
- NYSE:PRIM: $9.18 million (1.1% of AUM)
- NASDAQ:RMBS: $9.14 million (1.0% of AUM)
As of November 14, 2025, shares were priced at $95.25, down 16.85% from the 52-week high.
Rambus delivered a 78.5% total return over the past year, outperforming the S&P 500 by 62.84 percentage points.
Trailing twelve months revenue was $678.49 million with net income of $228.82 million; forward P/E was 32.08 as of the latest estimates.
Company overview
| Metric | Value |
|---|---|
| Market capitalization | $10.37 million |
| Revenue (TTM) | $678.49 million |
| Net income (TTM) | $228.82 million |
| Price (as of market close 2025-11-14) | $95.25 |
Company snapshot
- Rambus offers DDR memory interface chips, silicon IP solutions, and security IP, with revenue primarily from semiconductor products and intellectual property licensing.
- It operates a fabless semiconductor business model, generating income through direct product sales and licensing fees for its patented technologies.
- The company serves module manufacturers, OEMs, and global technology companies across the United States, Asia, and Europe.
Rambus Inc. is a leading provider of advanced semiconductor products and intellectual property solutions, specializing in memory interface chips and security technologies. The company leverages a robust patent portfolio and a fabless model to address the needs of high-performance computing and data center customers. Strategic focus on innovation and global reach positions Rambus as a key enabler in the evolving semiconductor ecosystem.
Foolish take
Investment management firm Informed Momentum's purchase of Rambus stock is noteworthy for a few reasons. The action represented an initial stake in Rambus, and the buy was so big, it catapulted Rambus to the fifth largest holding in the fund out of more than 250 stocks.
This suggests Informed Momentum is bullish on the future of Rambus, which makes sense in the era of artificial intelligence. AI systems require high-performance semiconductor products to function, and Rambus's memory interface solutions are an important part of this.
As a result, it's no surprise the company's third quarter resulted in revenue rising to $178.5 million, up from the prior year's $145.5 million. Despite this, costs also increased, culminating in a slight year-over-year decline in net income to $48.4 million from $48.7 million.
The success Rambus is seeing sent its stock to a 52-week high of $114.55 in October. While shares have dropped since then, the stock's P/E ratio of nearly 46 remains elevated, so wait for the price to drop further before deciding to buy shares.
Glossary
13F assets under management: The total value of U.S. equity securities that an institutional investment manager reports quarterly to the SEC.
Position: The amount of a particular security or asset held by an investor or fund.
Stake: The ownership interest or shareholding a fund or investor has in a company.
AUM (Assets Under Management): The total market value of investments managed on behalf of clients by a fund or firm.
Fabless semiconductor: A company that designs and sells chips but outsources manufacturing to third-party foundries.
Intellectual property licensing: Earning revenue by granting others the right to use patented technologies or proprietary designs.
OEM (Original Equipment Manufacturer): A company that produces parts or equipment used in another company's end products.
Forward P/E: Price-to-earnings ratio using forecasted future earnings instead of past earnings.
Total return: The investment's price change plus all dividends and distributions, assuming those payouts are reinvested.
Trailing twelve months (TTM): The 12-month period ending with the most recent quarterly report.
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Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Kratos Defense & Security Solutions and Sterling Infrastructure. The Motley Fool has a disclosure policy.
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