Why the 4DS Memory (ASX:4DS) share price surged 8% today

The 4DS Memory Ltd (ASX: 4DS) share price shot nearly 8% higher today following the release of a positive update. Here's the lowdown.

The 4DS Memory Ltd (ASX: 4DS) share price was rising against the tide of today's negative ASX market trend. This followed the memory storage provider's announcement of a renewed partnership agreement.

By the market's close, 4DS Memory shares were trading at 14 cents a pop, up 7.7% for the day. In comparison, the All Ordinaries Index (ASX: XAO) ended the day sitting at 7,194 points, down 1.2%.

A man looks stunned as a cloud explodes from his head representing the CogState share price crashing today in

Image source: Getty Images

What does 4DS do?

4DS Memory is a semiconductor company that develops resistive random-access memory (ReRAM). With research facilities in Silicon Valley, the start-up tech is focused on commercialising its product to become a replacement for more traditional Flash memory storage.

Renewed agreement

Investors were buying up 4DS Memory shares today after the company announced a positive update to the ASX.

According to its release, 4DS Memory has signed a renewed joint development agreement (JDA) with Western Digital Corporation subsidiary, HGST. The partnership will see both companies work together for another 12 months, marking 8 consecutive years of partnership.

4DS Memory is currently developing its interface switching ReRAM technology with HGST as well as digital innovation hub, IMEC.

CEO and managing director of 4DS Memory Dr Guido Arnout welcomed the renewal, saying:

We are very pleased that Western Digital and HGST have renewed our joint development agreement following a review of our significant progress during the past twelve months. This progress includes the Second Platform Lot currently in the final fabrication stage at imec that we will receive in early June for analysis.

HGST signed the agreement well ahead of its initial due date of 30 June 2021.

4DS Memory share price review

It's been a great 12 months for investors, with the 4DS Memory share price jumping by more than 200%. Year-to-date performance, however, has been less impressive, with the company's shares rising by just 12%.

4DS Memory shares reached a multi-year high of 28 cents in January this year before retreating to their current level. 

The company commands a market capitalisation of roughly $170 million, with approximately 1.3 billion shares outstanding.

Motley Fool contributor Aaron Teboneras owns shares of 4DSMEMORY FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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