Rambus Stock To $127?

RMBS: Rambus logo
RMBS
Rambus

Rambus (RMBS) stock has fallen by 21.8% in less than a month, from $125.93 on 21st Jan, 2026 to $98.45 now. What comes next? We believe there is a good chance of a stock rebound considering history of recovery post-dips and our current Attractive but Volatile opinion of the stock. Read Buy or Sell Rambus Stock to see how we arrive at this opinion.

Dip buying is a viable strategy for quality stocks that have a history of recovering from dips. As it turns out, RMBS stock passes basic quality checks. Historically, the median return for the 12-month period following sharp dips was 42%, with median peak return reaching 69%. We define sharp dip as stock going down 30% or more, in less than 30 day period.

Below, we get into details of historical dips and subsequent returns.

 
Historical Median Returns Post Dips
 

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Period Past Median Return
1M 4.9%
3M 16.2%
6M 26.1%
12M 41.9%

 
Historical Dip-Wise Details
 
RMBS had 7 events since 1/1/2010 where the dip threshold of -30% within 30 days was triggered

  • 69% median peak return within 1 year of dip event
  • 292 days is the median time to peak return after a dip event
  • -17% median max drawdown within 1 year of dip event

30 Day Dip RMBS Subsequent Performance
Date RMBS SPY 1Y Peak
Return
Max
Drop
# Days
to Peak
Median     42% 69% -17% 292
4042025 -31% -16% 164% 192% -1% 292
8222024 -30% -0% 65% 69% -17% 356
3122020 -39% -24% 104% 126% -5% 344
4232012 -34% -0% 42% 61% -12% 358
11162011 -54% 8% -36% 29% -45% 70
8102011 -31% -13% -52% 86% -60% 90
5172011 -32% -0% -66% 39% -66% 175

 
Rambus Passes Basic Financial Quality Checks

Revenue growth, profitability, cash flow, and balance sheet strength need to be evaluated to reduce the risk of a dip being the sign of a deteriorating business situation.

Quality Metrics Value Quality Check
Revenue Growth (LTM) 31.0% Pass
Revenue Growth (3-Yr Avg) 17.3% Pass
Operating Cash Flow Margin (LTM) 47.0% Pass
Leverage (see below) Pass
=> Interest Coverage Ratio 191.1  
=> Cash To Interest Expense Ratio 479.2  

Not sure if you can take a call on RMBS stock? Consider portfolio approach

Why Stock Pickers Win More With Multi Asset Portfolios

Individual picks are volatile but diversified assets offset each other. A multi asset portfolio helps you stay the course capture upside and reduce downside.

The asset allocation framework of Trefis’ Boston-based, wealth management partner yielded positive returns during the 2008-09 period when the S&P lost more than 40%. Our partner’ strategy now includes Trefis High Quality Portfolio, which has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices