15 AI Stocks That Are On Sale

13. Rambus, Inc. (NASDAQ:RMBS)

Number of Hedge Fund Holders: 21

Expected Earnings Growth: 10.1%

P/E Ratio: 21.2

Rambus, Inc. (NASDAQ:RMBS) is a semiconductor company based in San Jose, California. It offers DDR memory interface chips, silicon IP and interface IP solutions, and more.

This company offers industry-leading products aimed at moving data faster and more safely to address the growing need for data centers and AI. In the second quarter, Rambus, Inc. (NASDAQ:RMBS) saw product growth fueled by its leadership in DDR memory interface chips, resulting in outstanding cash generation from operations of $70 million which has strengthened the company’s balance sheet.

Rambus, Inc. (NASDAQ:RMBS) is presently confident in the long-term outlook for the data center market, which is benefitting from an uplift in traditional servers and the ongoing growth of AI. Because of this, the company’s memory interface chips-led revenue grew 13% sequentially in the second quarter, delivering product revenue of $57 million at the high end of expectations.

While total revenue for the company, coming in at $132 million, was also up 10% year-over-year, investors were more concerned with Rambus, Inc.’s (NASDAQ:RMBS) net income for the quarter, which fell drastically from $169 million in the second quarter of 2023 to only slightly over $36 million in the second quarter of 2024. Because of this, many investors are actually disappointed by the company’s performance so far, and this has definitely taken a hit on the stock.

However, seeing as Rambus, Inc. (NASDAQ:RMBS) has immense potential for growth because of its essential role in the semiconductor space, some may consider this a prime opportunity to buy a good stock at a great discount.

Rambus, Inc. (NASDAQ:RMBS) had 21 hedge funds long its stock in the second quarter, with a total stake value of $110.4 million.