Weebit Nano share price rockets 18% as commercialisation buzz continues

ASX 200 investors are sending the Weebit Nano share price leaping higher again on Monday.

| More on:
Digital rocket on a laptop.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Weebit Nano Ltd (ASX: WBT) share price is surging today, up 17.6%.

Shares in the S&P/ASX 200 Index (ASX: XJO) tech stock, which develops advanced memory technologies for the global semiconductor industry, closed on Friday trading for $3.76. At the time of writing on Monday, shares are swapping hands for $4.72 apiece.

For some context, the ASX 200 is down 0.8% at this same time.

Here's what's driving investor interest today.

Weebit Nano share price riding high on commercialisation news

The Weebit Nano share price is having another stellar day after closing up 6.8% on Thursday and gaining another 13.3% on Friday.

ASX 200 investors who bought the stock this time last month will now be sitting on gains of 30%. Shares are up an impressive 87% over the past 12 months.

Today's strong gains look to be connected to ongoing enthusiasm over Thursday's announcement of a commercial agreement with South Korean foundry DB HiTek.

As The Motley Fool reported on Thursday, "DB HiTek has licensed the company's memory technology, Weebit Resistive RAM (ReRAM), for its customers to integrate as embedded non-volatile memory (NVM) in their systems on chips (SoCs)."

Investors quickly sent the Weebit Nano share price higher on the news, although the company stressed that it was unclear how much revenue it might earn from the agreement "due to the contingent nature of the license fees and royalties".

Revenue will depend on how many customers sign up to use Weebit's memory tech, as well as on how many chips are then produced using that technology.

Weebit CEO Coby Hanoch highlighted the potential growth from the agreement.

According to Hanoch:

As one of the world's largest contract chip manufacturers, DB HiTek's extensive customer base can gain significant advantage from using Weebit ReRAM in their new product designs, including improvements to retention, endurance, and power consumption.

Looking ahead, Hanoch said, "We are seeing increasingly strong market demand for Weebit ReRAM and expect to sign further commercial agreements."

Judging by the fast-rising Weebit Nano share price, investors also look to be pricing in those further agreements.

Motley Fool contributor Bernd Struben 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.

More on Technology Shares

A man holds up a block from falling in a row of dominos.
Share Market News

Here's how the ASX 200 market sectors stacked up this week

The ASX 200 gained 0.36% and the technology sector stood out.

Read more »

A woman holds her hand out under a graphic hologram image of a human brain with brightly lit segments and section points.
Technology Shares

Up 40%: What on earth happened to BrainChip shares in November?

How did Brainchip shares pull off such an incredible November?

Read more »

A man in a suit face palms at the downturn happening with shares today.
Technology Shares

Why is this ASX tech stock crashing 28% on Thursday?

Investors aren't happy about this tech stock's latest update.

Read more »

A surprised man sits at his desk in his study staring at his computer screen with his hands up.
Technology Shares

The CEO of this ASX 200 share just sold $3.9m of shares

This tech stock has just reported heavy insider selling. Should you be concerned?

Read more »

A man sitting at a computer is blown away by what he's seeing on the screen, hair and tie whooshing back as he screams argh in panic.
Technology Shares

Why is the EML share price crashing 33% today?

This payments company's shares are falling heavily today. But why?

Read more »

Five happy friends on their phones.

Buy these exciting ASX tech ETFs in December

These ETF give investors access to some high-quality tech stocks from across the globe.

Read more »

Focused man entrepreneur with glasses working, looking at laptop screen thinking about something intently while sitting in the office.
Technology Shares

Is the Appen share price finally good value after crashing 75% in a year?

Is this beaten down tech stock a buy or one to avoid?

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Technology Shares

Why is the WiseTech share price ending the week in the red?

This tech stock is under pressure on Friday. But why?

Read more »