Rambus Soars on Supreme Court Ruling

A Micron spokesperson was not immediately available for comment.

Crawford adds that he thinks today's legal setback could prompt memory makers to consider a settlement with Rambus instead of proceeding with litigation. "If they litigate and lose, they lose not only royalties from three years back, but if Rambus can convince a jury that there was willful infringement on its patents, [the defendants] could also face treble damages."

Today, shares of Infineon were up 8 cents, or 0.6%, to $13.98, while Micron was losing 13 cents, or 1%, to $13.53.

In another important development, the Supreme Court action seriously undermines the FTC's case against Rambus, says Crawford. "When the [Appeals Court] came out with their opinion in January, that crippled the FTC's case and this affirmation of that ruling really kills it," he says, noting that the FTC's lead prosecutor recently announced that he will resign from the agency this week. "I think the FTC case is really imploding on itself now."

Crawford, who has a buy rating on Rambus, owns shares in the stock and is short Micron. Riley does not do banking.