Rambus Downgraded to Neutral Amid DRAM Shortages

Baird Equity Research downgraded Rambus Inc. to Neutral, keeping $120 price target, citing DRAM shortages affecting growth through 2027.
AI-driven data center demand boosts memory need, but new DRAM capacity is shifting to high‑bandwidth memory, limiting RDIMM/MRDIMM supply.
Baird projects RDIMM unit growth of ~20% in 2026, slowing to 12‑15% in 2027, with overall DRAM bit supply lagging demand.
Analysts see minimal near‑term product revenue upside and weaker YoY comparisons unless new product launches occur.