Why Rambus Shares Popped


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 have popped today by as much as 10% after the company settled a long-standing patent dispute with rival SK Hynix.

So what: The two companies have entered into a five-year patent license agreement where SK Hynix can use Rambus' memory-related patents in its semiconductor products. The agreement includes quarterly payments of $12 million to Rambus related to DRAM products.

Now what: Rambus and SK Hynix have now settled all outstanding patent claims. Rambus CEO Ron Black called it a "milestone agreement" that allows the two companies to collaborate and focus on the future. The SK Hynix settlement is the latest in a string of other licensing deals that Rambus has scored with other chip makers, although it lost a major suit to Micron last year.

Interested in more info on Rambus? Add it to your watchlist by clicking here.

It's incredible to think just how much of our digital and technological lives are almost entirely shaped and molded by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.

The article Why Rambus Shares Popped originally appeared on Fool.com.

Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Originally published