10 Worst Performing Stocks to Buy on the Dip

6) Rambus Inc. (NASDAQ:RMBS)

Average Upside Potential: 55.51%

% Fall on a YTD Basis: ~35%

Number of Hedge Fund Holdings: 21

Rambus Inc. (NASDAQ:RMBS) offers semiconductor products in the US, South Korea, Singapore, and internationally.

The stock of Rambus Inc. (NASDAQ:RMBS) saw a significant decline of ~35% on the YTD basis as a result of shifting dynamics of the semiconductor industry. Also, the company’s shares were impacted due to lower spending on traditional servers, which is being replaced by AI spending. Rambus Inc. (NASDAQ:RMBS) has been facing several challenges. The transition from DDR4 to DDR5 will need careful production ramps. Also, amidst increasing competition, the company has to navigate some price erosion. The rollout of new products has a risk of slower-than-anticipated adoption and qualification processes. This might impact its short-term revenue growth.

On the other hand, Wall Street experts believe that the stock of Rambus Inc. (NASDAQ:RMBS) is well-placed to take off amidst the optimism around the company’s long-term prospects in the data center and AI markets. Since Rambus Inc. (NASDAQ:RMBS) continues to make strategic investments in new products and technologies for data centers and client devices, the market expects that the company is well-placed in the data center and AI markets with its new DDR5 server PMICs and Client Clock driver chip.

Rambus Inc. (NASDAQ:RMBS) expects that Q3 2024 should bring in continued product revenue growth. The company continues to leverage its leadership in DDR5 technology to fuel growth in the data center and AI sectors and has maintained its focus on RCD generations, artificial intelligence, power, performance, and security in data centers and client spaces.

Rosenblatt Securities reaffirmed a “Buy” rating on the shares of Rambus Inc. (NASDAQ:RMBS), setting a $85.00 price target on 10^th September.

Chartwell Investment Partners, LLC, an affiliate of Carillon Tower Advisers, Inc., released the first quarter 2024 investor letter. Here is what the fund said:

“Rambus Inc. (NASDAQ:RMBS) shares lagged as the company disappointed investors with weak guidance for the first quarter of 2024, due to lower product revenues for the semiconductors it makes. Spending on traditional servers has been lower, replaced by AI spending, which is having a negative impact on Rambus.”