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Is Rambus Stock a Buy After Investment Firm Informed Momentum Initiated a Big Position?

The Motley Fool Logo The Motley Fool By Robert Izquierdo
Is Rambus Stock a Buy After Investment Firm Informed Momentum Initiated a Big Position?

Investment firm Informed Momentum initiated a new position in Rambus by purchasing 89,201 shares worth $9.14 million in Q3 2025, making it the fund's fifth-largest holding. The move reflects bullish sentiment on Rambus's semiconductor products, which are in high demand for AI applications. However, the stock's elevated P/E ratio of 46 suggests investors should wait for a better entry point.

Insights
RMBS   positive

Strong institutional backing from Informed Momentum's significant new position, robust revenue growth (22.6% YoY to $178.5M), and strategic positioning in high-demand AI semiconductor market. However, elevated P/E ratio of 46 and recent 16.85% pullback from 52-week high temper the outlook.