Why is the 4DS share price rocketing 48% on Monday?

This small cap tech stock is rocketing on Monday. But why?

| More on:
Happy man working on his laptop.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The market may be heading lower on Monday, but that hasn't stopped the 4DS Memory Ltd (ASX: 4DS) share price from shooting higher.

In morning trade, the semiconductor company's shares are up 48% to 21.5 cents.

Why is the 4DS share price shooting higher?

Investors have been buying 4DS shares this morning after the company released an update on the results of the Fourth Platform Lot.

According to the release, further analysis has revealed significantly better results than those that were announced last month which put a rocket under the company's shares.

The release notes that the focus of the additional testing was to establish the optimal conditions of the 60nm resistive random-access memory (ReRAM) cells in the megabit array.

Pleasingly for shareholders, the second test cycle of the Fourth Platform Lot is now complete and the analysis shows the following:

  • Write speed at 9.5 nanoseconds which significantly outperforms DRAM write speed.
  • Increased endurance in excess of 3 billion cycles on a megabit array.
  • Verified equivalent DRAM read speed.
  • Verified persistent memory with variable and tuneable retention.

4DS also highlights that the upper limit of endurance is unknown because it has a finite capacity due to equipment and manpower to test the upper limit in this additional analysis period. Further analysis will be done over time.

Why is this good news?

Investors appear to believe that these results point to ReRAM being a potential successor to DRAM.

The company has previously highlighted that the high-density high-volume memory segment is currently dominated by DRAM (a US$95 billion market) and NAND Flash (a US$56 billion market). It highlights:

The read/write speed and endurance parameters are critical to the Company's goals in the memory space requiring DRAM-like performance. 4DS' ReRAM performance profile to suitably meet this goal has again been clearly demonstrated on the Fourth Platform Lot via the additional testing.

Executive chairman, David McAuliffe, concludes:

These additional megabit array results are a significant milestone for the Company. Moving forward we will continue to undertake further analysis to test the upper limits of endurance and read/write characteristics for the purpose of further enhancements to the Platform. With significant results and a strong balance sheet the Company is extremely well placed to position itself in the memory space that targets a technology that can be closer to DRAM.

The 4DS share price is now up 200% since this time last month.

Motley Fool contributor James Mickleboro 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 Scott Phillips.

More on Technology Shares

Man holding a calculator with Australian dollar notes, symbolising dividends.
Technology Shares

$10,000 invested in DroneShield shares 5 years ago is now worth…

You might be laughing all the way to the bank if you had done this.

Read more »

Happy woman working on a laptop.
Technology Shares

Up 60% since April, why this $40 billion ASX 200 tech stock remains a 'compelling buy' today

A leading expert believes this $40 billion ASX 200 tech stock has a lengthy growth runway ahead of it yet.

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Technology Shares

DroneShield shares sink 7% despite big news

Let's see what's going on with this market darling on Thursday.

Read more »

A man activates an arrow shooting up into a cloud sign on his iPad.
Technology Shares

Up 25% since April, is it too late to buy Xero shares today?

A leading expert gives his verdict on the growth outlook for Xero shares.

Read more »

Man looking at digital holograms of graphs, charts, and data.
Technology Shares

2 amazing ASX tech shares I wish I'd bought last year

These tech companies are among the world’s best companies.

Read more »

A man in a business suit and tie places three wooden blocks with the numbers 1, 2, and 3 on them on top of each other.
Broker Notes

3 reasons to buy this booming ASX All Ords tech stock today

A leading broker forecasts more gains to come from this surging ASX All Ords tech stock.

Read more »

Man ponders a receipt as he looks at his laptop.
Technology Shares

Brokers rerate 3 leading ASX 200 tech stocks

Experts reveal their ratings on the ASX 200 tech sector's three biggest companies.

Read more »

Hologram of a man next to a human robot, symbolising artificial intelligence.
AI Stocks

Why Macquarie forecasts a big rebound for these 2 quality ASX All Ords tech stocks

Macquarie expects a big rebound is coming for these AI linked, ASX All Ords tech stocks.

Read more »