Rambus collaborating with AMD

Rambus Inc. has announced that they are collaborating with AMD over a deal, which would see the microprocessor maker paying them $75 million over five years to license Rambus technology. Rambus technology would help AMD develop faster processors, which communicate well with the other components of the computing resulting in boosting speeds.

The announcement of this deal helped the company gain 10% in the share market as the shares of Rambus touched $17.85 in early morning NASDAQ trade. This deal would bring around $15 million in revenue for Rambus every year for the next five years from AMD. The market had expected the company to report $166 million in revenue during 2006. This outlook would now require another update from the experts.

A.G. Edwards analyst Gary Mobley said in a statement on this new deal between the two technology companies: “It’s incremental. It will add almost 10 percent toward revenue.” Rambus specializes in developing technologies, which helps in improving the computing powers of personal computers. They patent their technologies and sell them to component makers like Intel and AMD.