Join our daily newsletter At The Bell to receive exclusive market insights
Weebit Nano (ASX:WBT) has shot up +12.5% to just south of $4.60/sh, the same valuation the company boasted during the latter lockdown years, on the back of its Wednesday earnings report.
Listen to the HotCopper podcast for in-depth discussions and insights on all the biggest headlines from throughout the week. On Spotify, Apple, and more.
The Australian market liked record quarterly payments of $73.M, and the fact that it’s embedded its ‘Weebit ReRAM’ tech in “next-generation products.” It adds to what’s been a good run YoY, with returns up +117%.
“The strategic importance of ReRAM as a next-generation non-volatile memory (NVM) continues to grow, highlighted recently by GlobalFoundries launching its own ReRAM technology,” company CEO Coby Hanoch said.
“This has sent a strong signal to the market that ReRAM is now a ‘must have’ offering for fabs with very few having the resources to develop this complex technology in-house… a pureplay ReRAM company, Weebit is first to market with several competitive advantages including suitability for high-temperature automotive applications and the ability to customise solutions.”
Whatever that means – but high-temperature automotive applications sure sounds like they’re hoping the chips could be used in so-called “AI” applications.
(Weebit’s success is a stark contrast to that of 4DS Memory’s, which this year more or less implied it would leave the microchip game altogether after keystone sixth-stage testing showed its tech. In short, didn’t work.)
At any rate, Weebit is left with just south of $92M in cash and, in terms of its share price, it’s now back towards levels it last hit during the lockdown years when (especially homegrown) tech stocks became of vast interest. That was given WFH bringing to the fore the need for millions of people worldwide to suddenly become a lot more attached to their various devices, which all contain microchips like that of Weebit’s.
And now that microchip-shortage pressures, also from the COVID-19 era, have mostly worn off, we’re seeing microchips rise again on a different kind of upside: A gravity-defying upward AI momentum that has been described by many as even larger than the 2000s dot-com bubble.
Clearly, those untold participants driving bullish sentiment aren’t paying much attention to those portents of woe.
WBT last traded at $4.59/sh.
Join the discussion: See what HotCopper users are saying about Weebit Nano Ltd and be part of the conversations that move the markets.
The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.
