Weebit Nano Ltd (ASX: WBT) shares are starting the week with a bang.
In morning trade, the ASX tech stock is up almost 16% to $5.69.
Why is this ASX tech stock rocketing 16%?
Investors have been bidding the semiconductor company's shares higher today after it made a couple of big announcements.
The first announcement reveals that the ASX tech stock has licensed its resistive random access memory (ReRAM) technology to Texas Instruments Inc. (NASDAQ: TXN). It is a US$160 billion global semiconductor company that designs, manufactures and sells analog and embedded processing chips.
According to the release, under the terms of the agreement, Weebit's ReRAM technology will be integrated into Texas Instruments' advanced process nodes for embedded processing semiconductors. The agreement includes intellectual (IP) licensing, technology transfer, design, and qualification of Weebit ReRAM in its process technologies.
Weebit ReRAM is a low-power, cost-effective non-volatile memory (NVM) that has proven excellent retention at high temperatures and has been qualified for AEC-Q100 150°C operation.
Commenting on the news, the ASX tech stock's CEO, Coby Hanoch, said:
TI is one of the world's foremost integrated device manufacturers, producing tens of billions of chips every year. This agreement is another strong signal that the industry is moving towards ReRAM as the successor to flash memory in SoC designs. It also reinforces Weebit's position as the leading independent provider of ReRAM technology.
The company warned that this license agreement is expected to be long-term but its economic materiality is not known at this time. It stated that it views this commercial agreement as strategically important given Texas Instruments' position in the global semiconductor industry.
Production orders and royalty payments will only commence in the medium term, at Texas Instruments' discretion.
Texas Instruments' Senior Vice President of Embedded Processing, Amichai Ron, said:
We are excited to collaborate with Weebit Nano to integrate ReRAM memory technology into our process technologies and products. The TI and Weebit Nano collaboration will enable our customers to get access to industry-leading NVM technology in performance, scale, and reliability which will enable us to enhance our position as a leading embedded processors provider.
Revenue guidance
In a separate announcement, the ASX tech stock revealed its revenue expectations for FY 2026.
It notes that in its annual general meeting presentation in November, it had a revenue goal of up to $10 million.
Following the signing of recent agreements, Weebit Nano now has IP licensing agreements with four fabs, as well as agreements with several product companies.
Based on these agreements, Weebit is now able to scrap this goal and announce revenue guidance for FY 2026 of a minimum of $10 million.
The post Guess which ASX tech stock is rocketing 16% on huge news appeared first on The Motley Fool Australia.
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 positions in and has recommended Texas Instruments. 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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