Invesco Distributors, Inc., an investment management firm, released its “Invesco Small Cap Value Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. In the third quarter, the fund underperformed the benchmark due to stock selection and an overweight in industrials. A lack of exposure to real estate also detracted from relative performance. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.

Invesco Small Cap Value Fund highlighted stocks like Rambus Inc. (NASDAQ:RMBS), in the third quarter 2024 investor letter. Incorporated in 1990, Rambus Inc. (NASDAQ:RMBS) is a semiconductor products provider. The one-month return of Rambus Inc. (NASDAQ:RMBS) was 0.62%, and its shares lost 20.94% of their value over the last 52 weeks. On December 18, 2024, Rambus Inc. (NASDAQ:RMBS) stock closed at $54.83 per share with a market capitalization of $5.84 billion.

Invesco Small Cap Value Fund stated the following regarding Rambus Inc. (NASDAQ:RMBS) in its Q3 2024 investor letter:

"Rambus Inc. (NASDAQ:RMBS): The company designs memory chips and other semiconductor products in the US, South Korea, Singapore and internationally. During the quarter, the company’s share price declined due to weak earnings results and anticipation of a short-term industry downcycle. This gave us the opportunity to purchase a company that we believe will benefit long term from increased memory demand related to artificial intelligence (AI) at a price below our estimate of intrinsic value."

A close-up of a cutting-edge semiconductor product being assembled by a technician.

Rambus Inc. (NASDAQ:RMBS) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held Rambus Inc. (NASDAQ:RMBS) at the end of the third quarter which was 21 in the previous quarter. Rambus Inc.’s (NASDAQ:RMBS) third quarter revenue of $145.5 million was in line with expectations. While we acknowledge the potential of Rambus Inc. (NASDAQ:RMBS) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed Rambus Inc. (NASDAQ:RMBS) and shared Carillon Eagle Small Cap Growth Fund's views on the company. Polen U.S. Small Company Growth Strategy added Rambus Inc. (NASDAQ:RMBS) in its portfolio during Q3 2024, anticipating consistent annual growth. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.