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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 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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