RMBS Should I Buy
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BUY now. RMBS is in a confirmed bullish trend (SMA_5 > SMA_20 > SMA_200), has supportive institutional flow (hedge funds buying +113% QoQ), and is benefiting from strong AI/data-center driven demand in memory interface chips per recent news. With price at 120.91 (just above the 119.335 pivot) and pre-market strength (+3.21%), the setup favors continuation toward 131.387 (R1). Near-term upside is supported by bullish options positioning (OI put-call 0.63), while elevated IV suggests a market expecting a meaningful move into the 2026-02-02 earnings catalyst. Net: this is a good buy right now for an impatient investor seeking momentum exposure to the AI hardware stack.
Trend/Structure: Bullish. Moving averages are stacked positively (SMA_5 > SMA_20 > SMA_200), signaling an established uptrend. Momentum: MACD histogram is positive (1.565) but contracting, implying bullish momentum is cooling slightly (more “uptrend consolidation” than reversal). RSI: RSI_6 at 62.48 is neutral-to-bullish (not overbought), leaving room for further upside. Levels: Pivot 119.335 is the key near-term line; holding above it favors continuation. Upside resistance at R1 131.387 then R2 138.833. Downside supports at S1 107.283 then S2 99.837. Tape/Context: Regular session is slightly down (-0.57%) while pre-market is strong (+3.21%), suggesting buyers are stepping in on dips.
Intellectia Proprietary Trading Signals
AI/data-center demand tailwind: News highlights strong demand for memory modules and interface chips tied to the AI boom.
Business momentum: Reported 42% revenue growth in memory interface chips in 2025 (news-driven datapoint), supporting the growth narrative.
Institutional flow: Hedge funds are net buyers with buying amount up 113.16% over the last quarter.
Upcoming catalyst: Earnings on 2026-02-02 after hours (Est. EPS 0.
can reinforce the uptrend if results/guide confirm AI-driven demand strength.
Analyst support: William Blair initiated with Outperform, citing RMBS leadership and pricing/demand benefits in server DRAM and AI data centers.
Legal overhang: News notes patent lawsuits despite strong demand; this can create headline risk.
Profitability not scaling with revenue (latest quarter): Net income and EPS were slightly down YoY despite strong revenue growth, suggesting mix/investment/expense pressure.
Momentum cooling risk: MACD histogram is positive but contracting, which can precede a consolidation phase near resistance (131–139 zone).
High implied volatility: Elevated IV implies the market expects big moves around earnings; expectations are less forgiving if results are merely “good.”
Latest quarter: 2025/Q3. Growth: Revenue rose to $178.513M, up +22.68% YoY (strong top-line expansion). Earnings quality: Net income $48.377M (-0.59% YoY) and EPS $0.44 (-2.22% YoY) slipped slightly, indicating earnings are not yet leveraging at the same pace as revenue. Margins: Gross margin remained very high at 79.5%, though down ~1.39 YoY—still a premium profile, but worth noting the slight compression. Overall read: Strong growth with mild near-term profitability/margin headwinds, consistent with a scaling growth story rather than a fully optimized earnings phase.
Recent change: On 2026-01-22, William Blair initiated coverage with an Outperform rating (no price target provided). Wall Street “pros” view: Leadership in DRAM interface chips (noted ~40% share in key components), positioned for higher selling prices and higher memory demand from server DRAM and AI data centers. Wall Street “cons” view: Ongoing patent litigation headline risk and recent YoY softness in EPS/margins despite strong revenue growth. Influential/political trading check: No recent congress trading data available; insider trend is neutral (no significant insider activity recently).
