Weebit Nano (ASX:WBT) share price rockets 17% up today. Here’s why.

The Weebit Nano Ltd (ASX: WBT) share price has rocketed following the release of a company update. The share price surged 17% to 88 cents this morning before falling back to 84 cents at the time of writing.

Let’s take a look at the company does and see why the Weebit Nano share price is soaring higher today.

What does Weebit Nano do?

Weebit Nano develops next generation computer memory technology. The Israeli company addresses the growing need for data storage through its resistive random-access-memory (ReRAM) technology. Weebit states that ReRAM is more than 1000 faster and uses 1000 times less power than traditional storage options like flash.

Milestone achievement

Weebit announced it had successfully completed the technology stabilisation process for its ReRAM product. The final stabilisation stage was completed with Leti, a research and development institute that specialises in nanotechnologies.

The stabilisation process saw reduced cell-to-cell and die-to-die non-uniformity, thus increasing the level of functional cells and batch-to-batch repeatability. Weebit noted the improvements to its silicon oxide ReRAM technology as an important milestone on the path to commercialisation.

The company advised the next phase will see the transfer of its technology to a semiconductor fabrication plant. In addition, Weebit is working towards a module IP design for the embedded market, standalone memory for mass storage, and production in a foundry.

What did the CEO say?

Chief executive officer Coby Hanoch validated the hard work done by the company. He said:

The successful completion of the stabilisation process follows four years of extensive research and development by the joint Weebit and Leti engineering teams, which has created a unique and highly competitive ReRAM technology.

Our close collaboration with Leti will continue, as we constantly strive to improve and further optimise the technical parameters of our silicon oxide ReRAM.

Hanock went on to say:

In parallel to completing the stabilisation process which has reinforced the capabilities of our technology, we are moving closer to commercialisation, engaging in discussions with a production partner and working towards transferring our IP and achieving technology qualification in the partner’s fab.

About the Weebit share price

Weebit shares were almost static before strongly performing since late August. A major catalyst for this could be from the investor hype in the sector. Brainchip Holdings Ltd (ASX: BRN) and 4DS Memory Ltd (ASX: 4DS) have both seen their share price rise to astronomical levels.

The Weebit share price was trading around 30 cents region, until it reached a 52-week high of $1.04 in September. Sitting 16% below, the Weebit share price is in reach of creating new multi-year high.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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