Investment management company Ave Maria recently released its “Ave Maria Growth Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter, the fund returned -1.65% compared to the S&P 500 Index’s -4.27% return. You can check the fund’s top 5 holdings for its best picks for 2025.
In its first-quarter 2025 investor letter, Ave Maria Growth Fund highlighted stocks such as Rambus Inc. (NASDAQ:RMBS). Incorporated in 1990, Rambus Inc. (NASDAQ:RMBS) is a semiconductor company. The one-month return of Rambus Inc. (NASDAQ:RMBS) was 10.84%, and its shares gained 6.75% of their value over the last 52 weeks. On June 18, 2025, Rambus Inc. (NASDAQ:RMBS) stock closed at $60.55 per share, with a market capitalization of $6.504 billion.
Ave Maria Growth Fund stated the following regarding Rambus Inc. (NASDAQ:RMBS) in its Q1 2025 investor letter:
“We also initiated a new position during the quarter in Rambus Inc. (NASDAQ:RMBS). Rambus is a semiconductor company that has historically focused on researching and developing foundational intellectual property for the computer memory industry. It earns outstanding profit margins by licensing its patent portfolio to the major memory chip manufacturers. Recently, the company has begun to sell its own chips which control the interface between the memory module and the rest of the computer system. It has been rapidly taking market share from the legacy interface chip companies and stands to grow revenue even faster in the next few years with a new chip that offers a major leap in memory performance for a higher price.”
A close-up of a cutting-edge semiconductor product being assembled by a technician.
Rambus Inc. (NASDAQ:RMBS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held Rambus Inc. (NASDAQ:RMBS) at the end of the first quarter, which was 34 in the previous quarter. In the first quarter, Rambus Inc. (NASDAQ: RMBS) reported revenue of $166.7 million, exceeding the upper limit of its guidance range. While we acknowledge the potential of Rambus Inc. (NASDAQ: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 timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.
In another article, we covered Rambus Inc. (NASDAQ:RMBS) and shared the list of best performing semiconductor stocks so far in 2025. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of RMBS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
