The 13% rally in Nvidia Corp (NASDAQ: NVDA) shares over the last 30 days is impressive. Not to be outdone, the ASX has a surging artificial intelligence (AI) stock of its own. One that even outshines the one-month return of the sector's poster child.
Shares in 4DS Memory Ltd (ASX: 4DS) have jumped 31% in one month flat. For context, the S&P/ASX All Technology Index (ASX: XTX) only managed a 6% rise over the same time. Meanwhile, the United States tech-centric index, the Nasdaq Composite Index (NASDAQ: .IXIC), has gained a weaker 4% during this time.
From good to even better news for 4DS, the ASX AI stock is on a tear again today.
Analysis underway
The 4DS Memory share price is 9.4% higher in afternoon trade, with more than $1 million worth of shares exchanged today. The increased appetite for the company's shares coincides with the release of 4DS' quarterly activity report.
Along with the usual cash flow report, 4DS provided a technical update for the September quarter. The company highlighted 'significant progress' on developing its fifth and sixth platform lots during the three-month period.
Since then, the company has sent its fifth platform lot from Imec to 4DS' own facility for testing. After being dispatched on 10 October, the Fremont facility received the hardware before the originally anticipated seven to 10-day estimate, allowing the team to commence analysis early.
According to the company's prior announcement, interim results from the fifth platform lot are expected to be available in 'mid Q4 2024'.
Elsewhere, the sixth platform lot is currently in development, targeting completion of the 20-nanometre platform by year-end.
ASX stock fuelled by AI excitement
The general excitement surrounding AI might also be behind 4DS' recent rally.
While the sector experienced a brief moment of reflection in August, AI continues to generate buzz. According to Forbes, AI technology is forecast to grow at an annual rate of 36.6% from 2023 to 2030, and nearly three-quarters of businesses surveyed are applying AI in some capacity.
Illustrating the rosy expectations, analysts believe Nvidia will double its revenue this financial year.
The rocketing phenomenon has been a rising tide lifting most boats in the semiconductor space. As such, 4DS wants a piece of the piece.
Last year, the company's quarterly report did not mention AI. This time around, the booming technology was included five times, including within the company's description, stating:
[4DS Memory's] technology, known as Interface Switching ReRAM, features tunable persistence and low energy per bit for today's most challenging compute-intensive and AI processor applications.
Despite the recent run, this ASX AI stock has still fallen 29% over the past year.
