On July 28, Rambus declined 5.1% in pre-market trading, trading at $91.1/share, with turnover of $755,600. Despite reporting Q2 results that topped expectations, the stock was weighed down by a broad semiconductor sector selloff.

Rambus posted Q2 adjusted EPS of $0.77, beating the consensus estimate of $0.72 by 6.9%, representing a 24.2% year-over-year increase from $0.62. Revenue came in at $207.4 million, surpassing expectations of approximately $199 million and rising 20.4% year-over-year. For Q3, the company guided adjusted EPS of $0.75 to $0.82 on revenue of $210 million to $216 million, roughly in line with analyst expectations of $0.78 and $213.6 million respectively. Benchmark had previously initiated coverage with a Buy rating and a $149 price target.

The decline appears driven primarily by sector-wide pressure. Within the Semiconductors sector, major constituents fell sharply: Micron Technology down 7.78%, Intel down 5.79%, Advanced Micro Devices down 5.3%, SK hynix down 5.09%, and NVIDIA down 1.18%. The stock had surged as much as 11.81% in after-hours trading immediately following the earnings release before reversing course amid the broader sector retreat.

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