Rambus Shares Up 15% on Huge Revenue Windfall

A new licensing deal with Broadcom (NASDAQ:BRCM) is giving Rambus (NASDAQ:RMBS) stock a big boost. BWS Financial says the deal could produce $40 million per year in gross profit revenue for the company, while taking Broadcom out of the ITC squabble Rambus is involved in with several chipmakers. Rambus shares took a beating last month after an unfavorable ruling in a long-running antitrust lawsuit against Hynix and Micron (NASDAQ:MU).

“The announcement of RMBS reaching a deal with BRCM comes at a time when investors doubted RMBS’ patent portfolio,” report analysts at BWS.

Here’s how these chip shares are reacting to the news:

Broadcom Corp. (NASDAQ:BRCM): BRCM shares recently traded at $29.78, up $0.01, or 0.03%. They have traded in a 52-week range of $27.59 to $47.39. Volume today was 1,327,712 shares versus a 3-month average volume of 8,591,790 shares. The company’s trailing P/E is 17.93, while trailing earnings are $1.66 per share. Get the most recent company news and stock data here >>

Rambus Inc. (NASDAQ:RMBS): RMBS shares recently traded at $8.52, up $1.2, or 16.39%. They have traded in a 52-week range of $4.00 to $22.20. Volume today was 4,617,583 shares versus a 3-month average volume of 2,711,930 shares. The company’s trailing P/E is 50.11, while trailing earnings are $0.17 per share. Get the most recent company news and stock data here >>

Micron Technology Inc. (NASDAQ:MU): MU shares recently traded at $6.34, down $0.07, or 1.09%. They have traded in a 52-week range of $3.97 to $11.95. Volume today was 7,922,583 shares versus a 3-month average volume of 34,147,500 shares. The company’s trailing P/E is 37.29, while trailing earnings are $0.17 per share. Get the most recent company news and stock data here >>