12 Best Internet of Things Stocks To Buy According to Analysts

9. Rambus Inc. (NASDAQ:RMBS)

Analyst Upside Potential: 12.77%

Rambus Inc. (NASDAQ:RMBS) is a technology company that specializes in designing and licensing high-speed chip interface technologies and architectures for digital electronics. It focuses on making data transfer faster and safer by providing innovative hardware, software, and services across various sectors like data centers, IoT, mobile payments, and more. Its key products include DDR4 and DDR5 memory interface chips, and silicon IP that helps in connecting electronic components efficiently.

Rambus Inc. (NASDAQ:RMBS) concluded 2024 with significant achievements, positioning itself strongly for future growth. The company achieved a record quarterly product revenue of $73 million, up 37% year-over-year. During the year it introduced several new chip products including the first complete chipset for DDR5 MRDIMMs (Multiplexed Rank Dual Inline Memory Modules) and state-of-the-art DDR5 server PMICs (Power Management Integrated Circuits).

Mehdi Hosseini, an analyst at Susquehanna, raised the price target on the stock to $70 from $66, while keeping a Positive rating. The firm stated that they are encouraged by the improved EPS opportunity of Rambus Inc. (NASDAQ:RMBS), mainly due to the diversification of the DDR5 DIMM buffer chip portfolio. It is one of the best Internet of Things stocks to buy according to analysts.

Polen US SMID Company Growth Strategy stated the following regarding Rambus Inc. (NASDAQ:RMBS) in its Q4 2024 investor letter:

“Rambus Inc. (NASDAQ:RMBS) plays a foundational role in fueling innovation in the data center and server environments, serving large memory OEMs (Original Equipment Manufacturers) and hyperscalers. With its fabless model, Rambus generates robust free cash flow while maintaining a steady R&D reinvestment to sustain its industry-leading memory interface chips and silicon IP solutions. We estimate Rambus is well-positioned to compound earnings and free cash flow per share at a high-teens rate through the cycle.”