We recently published a list of Top 11 AI News and Ratings You Should Take a Look At. In this article, we are going to take a look at where Rambus Inc. (NASDAQ:RMBS) stands against other top AI news and ratings you should take a look at.
AI is experiencing a shift from massive, resource-intensive models to more efficient and accessible alternatives. Sakana AI’s CEO, David Ha, discussed how this transition is shaping the future of AI, highlighting the role of compact models and the broader impact on computing demand on Bloomberg: The Asia Trade. As AI development diversifies, the market is moving away from reliance on a single dominant player, and companies are exploring innovative ways to optimize performance.
The Growing Role of Efficient AI Models in Everyday Technology
David Ha shared his perspective on the AI industry, emphasizing how models like China’s DeepSeek are fueling demand for GPUs. He explained that the traditional approach has been to develop increasingly large AI models requiring significant investments and energy, but companies like Sakana AI are focusing on making AI faster and more efficient. One example is Tiny Swallow, a compact AI model built using Sakana AI’s Tate distillation method, which maintains strong performance despite being 100 times smaller than large models. This model can run entirely on a smartphone or web browser without relying on an API, reflecting a broader trend toward efficient AI solutions in 2025.
Ha compared the current landscape of AI to early computing, where large mainframes eventually gave way to more accessible, optimized technologies like PCs and smartphones. He believes AI will follow a similar path, with smaller, specialized models becoming more widespread. He also expects a future where multiple AI models, including those from DeepSeek, Meta’s Llama, and Sakana AI, will be used across different applications rather than a single dominant player controlling the market.
When asked about Nvidia, Ha dismissed concerns that smaller, efficient AI models could reduce demand for GPUs. Instead, he argued that these advancements will expand GPU usage, especially for inference tasks rather than just training, and attract a more diverse global user base. He believes that the company is well-positioned to benefit from this growing demand for AI compute power.
For this article, we selected AI stocks by reviewing news articles, stock analysis, and press releases. We listed the stocks in ascending order of their hedge fund sentiment taken from Insider Monkey’s database of 900 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A close-up of a cutting-edge semiconductor product being assembled by a technician.
Rambus Inc. (NASDAQ:RMBS)
Number of Hedge Fund Holders: 34
Rambus Inc. (NASDAQ:RMBS) provides semiconductor products, memory interface chips, and security solutions for data centers, automotive, and government applications.
On February 3, Rambus reported Q4 GAAP EPS of 0.58 and revenue of $161.1 million, up 32% year-over-year. The company reported cash, cash equivalents, and marketable securities of $481.8 million as of December 31, 2024. The management said that in 2025 and beyond, the expansion of AI will drive advancements in hardware, increasing demands for power, performance, and security across various markets. To meet these evolving needs, the company has strengthened its market position, accelerated product development, and expanded its addressable markets, laying the groundwork for future growth.
Additionally, Rambus’ (NASDAQ:RMBS) silicon IP portfolio includes high-performance interface and certified security solutions designed to meet the needs of emerging applications. The company said that AI continues to drive strong growth in Silicon IP, contributing to a solid Q4 and supporting long-term expansion. Demand for customized AI solutions is benefiting high-performance IP, with Tier 1 custom silicon providers and startups showing interest. Some significant offerings like HBM4 and GDDR7 memory controllers, along with security IP, are essential for AI accelerators, graphics, and high-performance computing applications.
Overall, RMBS ranks 6th on our list of top AI news and ratings you should take a look at. While we acknowledge the potential of RMBS as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RMBS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
