Record Product Revenue Driven by DDR5 Market Share Expansion
Rambus achieved a 43% year-over-year growth in product revenue, driven primarily by DDR5 memory interface chips.
The company believes it is gaining market share, slightly above 40% at the end of 2024, with expectations to continue increasing share in 2025.
Momentum in new chip and power management product adoption is modest but growing, with contributions expected to rise from low single digits to mid- and upper single digits in 2025.
The expansion from 12 to 16 memory channels in upcoming platforms like Intel's Granite Rapids is expected to further boost demand for DDR5 chips.
Long-term Growth Strategy and Portfolio Optimization
Rahul Patel discusses the importance of deepening connections with customers, partners, and employees to build a stronger growth foundation.
The company is evaluating its product portfolio, considering product pruning, and focusing on high-ROI investments, with more details to be shared at the 2026 Analyst Day.
Synaptics is also considering inorganic opportunities to accelerate growth, while maintaining disciplined capital allocation.
Strategic Focus on Data Center Building Block Solutions and Market Diversification
Super Micro introduced its data center building block solutions (DCBBS) last quarter, aiming to simplify AI infrastructure deployment and accelerate time to online.
The DCBBS enables customers to transform existing data centers into high-density, energy-efficient facilities within 3 to 6 months, significantly faster than traditional methods.
Key components of DCBBS include liquid cooling, power solutions, and system management, with several components already shipping or entering production.
Management expects DCBBS to eventually constitute 20-30% of total revenue, with a ramp-up over the next year, indicating a strategic shift towards higher-margin, comprehensive solutions.
Strategic Focus on High-Value Technologies and Portfolio Rationalization
onsemi is actively exiting noncore businesses and repositioning its sensing portfolio towards higher value segments such as ADAS and machine vision.
The company is ending the end-of-life of certain legacy products, with an expected $50-100 million revenue impact in 2026 that won't repeat.
Investments are focused on next-generation technologies where the company has clear competitive advantages, including intelligent power, sensing, and analog mixed signal technologies.
The move away from bulk hardware sales is part of a broader effort to align revenue with customer buying cycles, which should benefit revenue predictability starting in 2026.
This transition has caused a temporary decline in hardware margins but is expected to improve overall margin profile as SaaS and recurring revenues grow.
The company booked over 24,000 new units in Q2, the highest in over a year, indicating early positive traction from the new sales approach.
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