Weebit Nano (ASX:WBT) was up +14.8% at 2.40pm AEDT to $2.82/sh as some investors piled back into the company on the back of its September quarterly, which headline with the fact a second customer is looking at its ReRAM technology.
Weebit Nano’s ReRAM tech is designed to replace existing flash memory storage by offering a faster and lower-power-consuming alternative to the dominant technology. This value prop alone pushed WBT to a record high of A$8.55/sh, but that didn’t last as many investors took profits while others questioned how fast and how high the stock had run.
What was at one point the hottest trade this year, because it is Australia’s only real meaningful microchip stock, is far cooler as of mid-October – from the June peak over A$8.55/sh, four months later, WBT shares are worth A$2.82/sh after the jump on Friday.
The bottom line is that chip stocks in the US have been under pressure but also that US chip stocks already exist at scale whereas Weebit is still scaling up its technology (and its adoption), and therefore, haprofits and revenue.
The company is loss-making as of October 2026 and media reports earlier this month even suggested the company might go bankrupt due to its R&D CapEx, which the company firmly kicked back against. Highlighted on Friday was that the company still has a cash balance of A$164M.
It also noted receiving a $3.2M R&D rebate in its September quarterly on Friday, which is typically the kind of thing you get from smallcap juniors, but at this point WBT is probably keen to do everything it can to assuage investor concerns.
Further, WBT reported on Friday that its ReRAM technology has been adopted by an AI-developing-customer and claims its tech can be used in “next-generation AI computing.”
Of course, it will take more R&D to get there, as confirmed by the company’s CEO. Still, more than $4.8M worth of shares had traded hands heading into the final hour of trades on Friday.
Our customers continued to move closer to production during the quarter. A second existing customer received its first samples from the fab, with the chip operating well and successfully running … an important step towards mass production of our technology.
In addition, we signed two new AI customers, achieving one of our key targets for calendar year 2026, and received positive analysis results from an AI customer exploring our ReRAM for in-memory computing (IMC) … significant R&D work remains before we have a fully commercial IMC solution."
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