Why the Weebit (ASX:WBT) share price soared 24% Tuesday

The Weebit share price has rocketed up today by 24% as invetor interest continues to grow in this Israeli semiconductor company.

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The Weebit Nano Ltd (ASX: WBT) share price has rocketed up by 24.5% today as interest continues to grow in this ASX technology share. Weebit is a developer of next generation memory technology for the global semiconductor industry. According to the company, it is pioneering a new technology in this field.

Weebit Nano argues that flash memory is not keeping up in the embedded market. This is where memory is combined with other elements on the same chip. Moreover, the company proposes this new technology as a better replacement.

Rocket shooting out of investors outstretched hands to signify fast growth of ASX tech share

Image source: Getty Images

What moved the Weebit share price?

The Weebit share price was on fire today with the company recently announcing positive progress in the development of its new resistive random-access-memory (ReRAM) product. This is a technology Weebit states is the equivalent of 1000 times faster than and requires around 1000 times lower power than flash memory. 

According to Weebit, some estimates of the flash memory market place it at over US$60 billion. It also maintains that the world's storage requirements are doubling every two years. This is due to the increasing use of pictures and videos at a growing rate as well as the uptake of new, big-data and artificial intelligence applications.

Weebit recently announced it completed the stabilisation process for its ReRAM product, sending the Weebit share price up 17% on that day alone. This is a phase to verify that the production process is repeatable and consistent. In addition, the optimised integration showed excellent wafer-to-wafer reproducibility for various programming conditions, which means that different memory cells in different areas of a wafer and across different wafers in the batch present the same behaviour. According to Weebit, the chips are also made from the most common material in the semiconductor industry making them relatively easy to manufacture.

Management commentary

Coby Hanoch, CEO of Weebit Nano, 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.

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.

Weebit company performance

Investor interest in the company's technology and progress has been building over the 2020 calendar year. In year-to-date trading, the Weebit share price has rocketed up by nearly 198%. Indeed, it has blasted upwards by nearly 50% in the past 5 days alone. 

Motley Fool contributor Daryl Mather 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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