Rambus Shares Up Almost 9% On Two Big Announcements

Rambus RMBS made a series of announcements Wednesday morning that are moving the stock up more than eight percent.

Qualcomm Deal

Qualcomm QCOM will be integrating the CryptoManager Security Engine into its chips, according to Rambus.

CryptoManager will be integrated into Qualcomm’s manufacturing process and will provide increased security in mobile devices. Rambus filed an 8-K almost 20 minutes later stating the company will also provide its technology regarding patented memory, interface and security solutions to Qualcomm.

Related: A Comprehensive Guide to Semiconductor Industry ETFs

Guidance

At the same time as the Qualcomm announcement, Rambus raised guidance, although it's not certain that the increase in projected sales is due to the deal. Second quarter revenue is expected to fall between $75 million and $77 million versus $69 million to $74 million that the company had been previously expecting. In addition, full year revenue was raised from $295 million to $305 million.

Shares of Rambus are up 8.4 percent in Wednesday's pre-market at $13.40. Volume is very low, so big moves in either direction could occur.