Why is the Weebit Nano share price racing 5% higher on Friday?

What is getting investors excited about this tech stock today?

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The Weebit Nano Ltd (ASX: WBT) share price burst out of the gates on Friday morning.

In early trade, the memory technology company's shares are up almost 5% to $3.99.

This brings its month to date gain to approximately 20%.

Why is the Weebit Nano share price racing higher today?

The catalyst for today's gain has been the release of the company's quarterly activities report.

Although that update was more of a summary of things that have already been announced, some investors appear to have seen enough to snap up shares today.

They may be responding to the upbeat commentary from Weebit Nano CEO, Coby Hanoch.

Hanoch was very pleased with the past quarter and believes the company is on course to start generating revenue in the coming months. He said:

Weebit Nano has had an exceptional start to FY24, signing a commercial agreement with a Tier-1 foundry and qualifying our embedded ReRAM for automotive grade 1 temperatures. Importantly, we remain on track to receive initial revenues this calendar year. We are executing against both our technical and commercial roadmaps, and as the global leading independent provider of ReRAM, we are well positioned to sign new licensing agreements with partners and customers over the coming months.

The big question will be whether Weebit Nano generates sufficient revenue to justify its $720 million market capitalisation or whether it will become another Brainchip Ltd (ASX: BRN) flop.

Hanoch appears to believe it will be the former. He adds:

We are incredibly proud of our addition to the ASX 200 Index, reflecting our increased market capitalisation and significant commercialisation progress over the past two years. While this achievement has temporarily increased instability on our register, as is common when stocks enter a new ASX index and a period of shorting ensues, we remain focused on delivering long-term value for shareholders by meeting our commercial roadmap milestones. We are as confident as ever about our ability to meet demand for fast, more efficient memory technology as ReRAM grows to account for about a third of the rapidly growing embedded emerging NVM market.

Motley Fool contributor James Mickleboro 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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