This ASX tech stock is up 150% in a year. Here's why it's climbing again today

Weebit Nano extends its strong rally after the latest capital raising.

Weebit Nano Ltd (ASX: WBT) shares are back in the green on Tuesday, extending what has already been one of the ASX's standout 12-month performances.

In morning trade, the Weebit Nano share price is up 2.54% to $3.64.

The latest gain adds to a remarkable rally that has seen the stock surge almost 150% over the past year, driven by growing confidence in its ReRAM memory technology and broader AI commercial opportunity.

With momentum still on its side, today's rise suggests investors see further upside in the company's next growth phase.

A tech worker wearing a mask holds a computer chip.

Image source: Getty Images

Retail investors get access after $80 million raise

Today's update is the next stage of the recent capital raising, when Weebit Nano launched an $80 million institutional placement alongside an Israeli placement targeting up to $10 million.

The funds are intended to strengthen the balance sheet and support a faster push into next-generation memory and AI in-memory compute applications.

The newly opened SPP is targeting up to another $15 million, though management can accept additional demand or scale applications back.

The offer opened today and is scheduled to close on 29 April, with the new shares expected to be allotted on 6 May.

For existing shareholders, the SPP offers access at the same $4.05 price paid by institutions, without brokerage costs.

That said, with the stock trading at $3.64 this morning, the market is pricing the shares below the offer price. This could reduce short-term retail demand unless investors are looking further ahead to potential licensing growth.

Why investors are still interested

The bigger driver behind the strong 12-month share price performance is Weebit Nano's licensing momentum.

The company's ReRAM technology is being positioned as a lower-power replacement for embedded flash memory across AI, IoT, automotive, industrial automation, and edge computing devices.

Recent commercial wins, including its licensing agreement with Texas Instruments, have strengthened confidence that the technology is moving from early validation into broader commercial use.

With a market capitalisation of about $840 million, the stock remains one of the ASX tech sector's biggest winners over the past 12 months.

Investors appear willing to look past the short-term dilution from the raise and stay focused on growth in AI memory markets.

Foolish Takeaway

Tuesday's gain suggests the market has responded well to Weebit Nano broadening its recent raise to include everyday retail shareholders.

The next focus will be SPP uptake and whether the fresh capital can help support additional foundry and semiconductor licensing deals in the year ahead.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Texas Instruments. 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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