Here’s why this ASX All Ords tech share rocketed 34% today

It’s been a rather pleasant day for ASX shares this Tuesday. The All Ordinaries Index (ASX: XAO) gained a robust 0.51% to close at 7,230.4 points. But let’s talk about one All Ords tech share that put the index to shame today.

The Archer Materials Ltd (ASX: AXE) share price was on fire today. Shares in the materials technology company closed 12.33% higher at 82 cents a share.

It comes after this ASX All Ords tech share closed at 73 cents yesterday and opened at that level this morning. Then, in early afternoon trading, Archer shares shot as high as 98 cents each, a gain of more than 34%.

So what’s going on with Archer Materials? It must be something big, seeing the company gained a third of its value in little over an hour…

Well, it seems that an ASX release put out around midday is responsible for these eye-watering moves.

The announcement revealed that Archer Materials has achieved its goal of “reliably” fabricating sub-10 nanometre semiconductor chips.

Back in May, Archer announced that it had achieved fabrication of 15nm chips. This benefitted the company’s shares at the time as well. But back then, Archer also flagged that it was working towards “breaking through the 10-nanometre barrier”.

Well, that’s what the company now appears to have achieved.

Archer Materials shares rocket on sub-10nm chip news

Here’s some of what the ASX release said:

Archer has now fabricated sub-10 nm features reproducibly and reliably by developing several advanced lithographic processes on a silicon wafer in a clean-room environment. The work is a significant technical achievement and represents a technology development breakthrough for the Company…

Archer’s sub-10 nm feature fabrication is in line with the current semiconductor industry best-in-class for chip feature sizes and provides the Company with a significant competitive advantage…

The extreme miniaturisation would give Archer greater flexibility, capability, and higher integration density in its lithographic processes for the design and fabrication of its technologies.

Archer CEO Dr Mohammad Choucair had this to say on the news today:

Achieving sub-10 nanometre fabrication of electronic device components is an excellent outcome on our path to developing Archer’s biochip technology, and one that demonstrates the world-class capabilities of our pioneering team.

Archer Materials now hopes to use this technological breakthrough to advance its ambitions to provide a ‘biochip’ that can detect “some of the world’s most deadly communicable diseases”.

At the closing Archer Materials share price on Tuesday, this ASX All Ords tech share has a market capitalisation of around $211 million.

The post Here’s why this ASX All Ords tech share rocketed 34% today appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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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