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Rambus (RMBS) Loses 21% on Downgrade to Neutral

Rambus Inc. (NASDAQ:RMBS) is one of the 10 Stocks Reeling From Huge Losses.

Rambus dropped for a second day on Tuesday, slashing 21.17 percent to close at $111.27 apiece, as investors took path from an investment firm’s rating downgrade amid the ongoing shortage of memory products.

In a market note, Baird downgraded its rating for Rambus Inc. (NASDAQ:RMBS) to neutral from outperform previously, amid an expected slowdown in Registered Dual Inline Memory Module or RDIMM.

For illustration purposes only. Photo by Jeremy Waterhouse on Pexels

“While the acceleration in x86 demand, notably driven by agentic AI, is positive for Rambus, we are increasingly seeing the potential for a slowdown in RDIMM [year-on-year] growth next year due to increasing DRAM shortages, which we expect will persist throughout 2027,” Baird said.

“Rambus is the classic case of a unit-driven top-line impacted at times of severe memory shortages without the benefit of higher pricing,” it noted.

On Monday, Rambus Inc. (NASDAQ:RMBS) reported a net income of $59.9 million in the first quarter of the year, flat from the $60.3 million in the same period last year. Total revenues, however, grew by 8 percent to $180.2 million from $166.7 million year-on-year.

“Rambus opened 2026 with a solid first quarter, delivering financial results in line with guidance and generating strong cash from operations,” Rambus Inc. (NASDAQ:RMBS) President and CEO Luc Seraphin said.

“The growth of AI inference and agentic workloads in the data center continues to drive demand for higher memory bandwidth, efficient data movement, and scalable connectivity. With expanding offerings across chips and IP, Rambus is well positioned to support next-generation AI platforms and drive profitable long-term growth,” he noted.

While we acknowledge the risk and potential of RMBS as an investment, our conviction lies in the belief that some 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 and that has 10,000% upside potential, check out our report about the cheapest AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy. 

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
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