This up and coming tech stock jumped more than 15% after reporting an "exceptionally strong" start to the year

Shares in next-generation computer memory technology company Weebit Nano Ltd (ASX: WBT) jumped more than 15% in early trade on Wednesday, after the company said it had made an "exceptionally strong" start to the financial year.

The company also reported record quarterly customer payments of $7.3 million and said it was advancing discussions with multiple semiconductor fabricators.

Weebit Nano develops and licenses out advanced memory technology to the global semiconductor sector, with its flagship product being its resistive RAM (ReRAM) non-volatile memory technology.

As the company explains:

ReRAM … addresses the growing need for significantly higher performance and lower power memory solutions in a range of electronic products such as AI, Internet of Things (IoT) and wearable devices, automotive, industrial automation, robotics, neuromorphic computing, and many others.

Excellent first quarter

The company released a quarterly update to the ASX on Tuesday after the close of trade, with Chief Executive Officer Coby Hanoch saying Weebit Nano had a great start to the year.

Mr Hanoch added:

Weebit Nano has had an exceptionally strong start to FY26, taping out the first module embedded with our ReRAM at onsemi's production fab, securing multiple design agreements with product companies, and receiving record quarterly customer payments, This is a strong vote of confidence in the quality of our technology.

Mr Hanoch said the company was advancing commercial conversations with more than a dozen leading semiconductor foundries, device manufacturers, and product companies.

While we've achieved our product company target for 2025, we're continuing to work hard to secure additional licensing agreements with fabs and product companies before the end of the year. These negotiations are benefitting from evolving industry perceptions.

Deals to be done

Mr Hanoch said the strategic importance of ReRAM as a next generation technology continued to grow, with "very few" fabricators having the ability to develop the technology in-house.

Therefore, the majority of companies would be looking to strike licensing deals to accelerate their time to market, presenting an opportunity for Weebit Nano.

Mr Hanoch added:

As a pure play ReRAM company, Weebit is first to market with several competitive advantages including suitability for high-temperature automotive applications and the ability to customize solutions.

As well as generating $7.3 million in customer revenue, the company received a $4.1 million research and development tax rebate during the first quarter.

Weebit Nano shares jumped more than 15% in early trade on Wednesday, before settling back to be 12.8% higher at $4.60.

Weebit Nano was valued at $851.9 million at the close of trade on Tuesday.

The post This up and coming tech stock jumped more than 15% after reporting an "exceptionally strong" start to the year appeared first on The Motley Fool Australia.

Motley Fool contributor Cameron England 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.

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