ASX tech share Weebit Nano has surged 90% in 2023. What's going on?

Could this be Weebit Nano's year?

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Key points
  • The Weebit Nano share price has rocketed more than 85% already this year to trade at $6.18 right now
  • Meanwhile, the company announced exciting news of its memory technology
  • It also flagged several potential happenings that could occur this year 

This year has been a big one already for ASX tech share Weebit Nano Ltd (ASX: WBT). It's leapt 90% since its final close of 2022.

That has seen it rise from $3.25 then to trade at $6.18 at the time of writing. Not to mention, that's more than double where it was trading this time last year.

So, what's been behind the tech outfit's massive gains? Let's take a look.

A woman gives two fist pumps with a big smile as she learns of her windfall, sitting at her desk.

Image source: Getty Images

What's going right for the Weebit Nano share price?

Not only has 2023 been great for the Weebit Nano share price so far, but it's also been an interesting one for the company. In fact, it's on track to potentially post its first revenue this year.

The company opened the year by revealing it had taped-out demonstration chips integrating its embedded resistive random-access memory (ReRAM) module in a 22 nanometre fully depleted silicon on insulator process technology. Its share price rocketed 7% on the back of the release.

However, the market didn't respond so well to the company's quarterly report, released in mid-January, sending the Weebit Nano share price tumbling 5.6%.

Within the report, the company noted it's in discussions with multiple tier-1 fabs and key customers that have the potential to bring about new licensing agreements and orders.

It was also on track to surpass numerous milestones in the coming quarters, including the completion of technology qualification with partner SkyWater and starting to scale embedded ReRAM technology below 22 nanometres. It stated:

Our progress in the first half of the financial year means we are well-placed to productise our embedded ReRAM technology and secure first revenues in 2023.

Thus, investors in the ASX tech share have lots to be excited about this year.

However, not everything has run smoothly for Weebit Nano.

The stock was placed in a trading halt late last month on the back of an administrative error. After successfully seeking court orders, it returned to trade on 2 February.

It's also worth mentioning that Weebit Nano isn't alone in its 2023 gains. Many ASX tech shares have rejoiced this year.

After plummeting 34% last year, the S&P/ASX All Technology Index (ASX: XTX) has soared 9% since the final close of 2022.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. 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 Scott Phillips.

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