Weebit Nano (ASX:WBT) share price jumps 7% on update

Shares in the data memory tech group have gone bananas again…

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The Weebit Nano Ltd (ASX: WBT) share price is on fire today. Shares in the data memory technology business have surged 7.5% higher on Thursday after an ASX update.

Happy child jumping for joy.

Image source: Getty Images

Why has the Weebit Nano share price surged?

Interestingly, shares in the tech group are up despite no real news. This morning's ASX announcement was that the company would release its fourth quarter (Q4 FY2021) business update tomorrow.

The semiconductor memory technology developer will release its quarterly activities and Appendix 4C report tomorrow. That means there was no real information to be gleaned from today's update, but some investors appear to be expecting good news.

One other piece of news that may explain today's surge is an update from Crossbar Inc. Crossbar is a California-based company that also focuses on applications of ReRAM technology.

CrossBar yesterday announced a new ReRAM Application for hardware security and secure computing. Given Weebit Nano's focus on the technology, a new rumoured application could be enough to move the company's share price.

The Weebit Nano share price shot higher on the back of the announcement, climbing 7.5% at the time of writing. Tomorrow's update is much anticipated given Weebit Nano's recent success.

Shares in the Aussie tech group surged higher in early July. That followed a June 25 announcement where the company confirmed it had successfully demonstrated the integration of a selector with a ReRAM cell, for the standalone memory market.

Interestingly, the company's share price is actually down 46% in the last 6 months. However, momentum appears to be gaining given that the company's value has soared 30.1% in the last month.

More on Weebit Nano

The Aussie tech company, founded in 2010, focuses heavily on developing next-generation memory technology. Its primary activity is on commercialising its ReRAM silicon oxide technology – which is why recent breakthroughs have translated to large share price moves.

Weebit Nano's market capitalisation sits at $262 million but was nearly double that amount as recently as January.

Foolish takeaway

Based on today's moves, the Weebit Nano share price will be one to watch. Whether it's a new potential application of technology or anticipation of a strong business update, Weebit Nano is one to watch on Friday.

Motley Fool contributor Ken Hall 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 Bruce Jackson.

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