Rambus Shares Popped: What You Need to Know

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Rambus (NAS: RMBS) popped today by as much as 11% after the company announced that it had settled a patent dispute with NVIDIA (NAS: NVDA) .

So what: The duo has inked a five-year licensing agreement while settling all outstanding patent disputes. Rambus said the deal includes a broad range of chips that its rival makes, without giving out any juicy details about financial terms.

Now what: Rambus and NVIDIA had been patent dueling since 2008, when the former said that the latter's chips infringed on its intellectual property. NVIDIA countersued, as is tradition nowadays, and the rest is history. Rambus CEO Harold Hughes said, "This is an important license agreement, as it settles our differences and allows us to move forward with NVIDIA." The news comes shortly after Rambus lost a major case against Micron Technology and Hynix, absolutely crushing shares in the process.

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At the time this article was published Fool contributorEvan Niuholds no position in any company mentioned. Check out hisholdings and a short bio.Motley Fool newsletter serviceshave recommended buying shares of and writing puts in NVIDIA. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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