Rambus Inc. (NASDAQ:RMBS) shares closed almost 3% higher on Tuesday following the company’s reported solid Q1 quarter and Q2 guidance above the Street estimates (revenue of $128-146 million vs. Street’s $125.34 million).

Analysts at Deutsche said they were most impressed by the growth in its silicon IP opportunity with the current revenue run-rate at $120-130 million, compared to around $100 million in 2021, with the company highlighting strength in data center and AI, as well as incremental opportunities in areas such as automotive and government.

In the Products business, the company also beat H1/22 expectations but expects H2/22 to be lumpy as customers will take some time to absorb the initial DDR5 purchases.

Post results, the analysts raised their estimates for 2022/2023 slightly and raised their price target from $30 to $32, while keeping their buy rating unchanged.