How did RMBS's Q4 2024 earnings surprise impact investor confidence?

Rambus Inc.'s (RMBS) Q4 2024 earnings report likely bolstered investor confidence for several reasons:

1. **Strong Product Revenue Growth**: Rambus delivered record quarterly product revenue of $73.4 million, marking a 37% year-over-year increase. This significant growth demonstrates the company's ability to capitalize on market demand, particularly in the DDR5 memory interface chips.
2. **Cash Generation and Stock Repurchases**: The company generated record annual cash from operations of $230.6 million for 2024, an 18% year-over-year increase. Rambus also continued its stock repurchase program, retiring approximately 1.2 million shares. Such actions indicate financial strength and a commitment to returning value to shareholders.
3. **Strategic Patent License Agreement**: The extension of the patent license agreement with Micron through 2029 highlights Rambus's ability to leverage strategic partnerships for long-term growth.
4. **Positive Market Outlook**: Rambus projects Q4 revenue between $154 million and $160 million, with non-GAAP earnings per share anticipated to be between $0.52 and $0.59. This guidance suggests a positive market outlook and confidence in maintaining profitability.

Overall, RMBS's Q4 2024 earnings report likely reinforced investor confidence due to strong financial performance, strategic initiatives, and a positive market outlook.