MENU

Why the 4DS Memory Ltd share price rocketed 46% higher

One of the biggest movers on the market on Monday was the 4DS Memory Ltd (ASX: 4DS) share price.

The Silicon Valley-based semiconductor development company’s shares rose a massive 46% to reach an all-time high of 8 cents. This brought its five-day return to approximately 60%.

What happened?

Earlier today the company was dealt a speeding ticket from the ASX requesting an explanation for the rise. But according to management, there is no news to speak of that can explain this rise.

Instead, it appears as though investors that were at its annual general meeting this morning were impressed with what they saw and believe 4DS’ Interface Switching resistive random access memory (ReRAM) technology has a lot of potential.

As I mentioned in June of last year, the company has made significant advances with its ReRAM technology, improving read access time to such a degree that is comparable to dynamic random-access memory (DRAM).

Since then the company has entered into an agreement with Belgium-based R&D and innovation hub IMEC to develop a transferrable production-compatible process flow for its Interface Switching ReRAM technology.

What does this all mean?

Essentially, this all means that 4DS is developing a memory technology that could one day power the computers of the future. This is of course a huge market and one which could turn this small-cap tech share into a global tech giant.

However, it is worth remembering that there is still a long road ahead and the technology has not been perfected just yet. Investors may be best keeping their powder dry for now and waiting to see how further developments and tests go in the next few months.

In the meantime I would suggest investors look at tech shares such as Appen Ltd (ASX: APX) and Altium Limited (ASX: ALU).

Alternatively, these growth shares could also be great investment options today.

Top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool's in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool's Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand - and how quickly the share prices of these companies moves - we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Altium and Appen Ltd. 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. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.