Why Everspin Technologies, Inc. Stock Has Soared 150% Since May 20
A May 20 Barron's article (subscription required) on the disruptive potential of small-cap tech stocks Impinj and Everspin Technologies, Inc. (NASDAQ: MRAM) sparked a 12% jump in the stock price of the latter on the first trading day after the article appeared. The stock has continued to rise since then and closed on July 17 up 150% from where it closed on May 19. Even after the big move, the company is still tiny, with a market cap of only $300 million.
What's all the fuss about? Well, Everspin has a leading position in a technology called magnetoresistive random access memory (MRAM). Currently, Everspin is the only commercial provider of MRAM technologies.
MRAM is currently limited to only a few use cases, which is why Everspin only generated $28.77 million in revenue in the year ending in March, up less than 1% from the year before. However, next-generation MRAM products could achieve greater density, which could disrupt very large markets -- namely, the markets for both non-volatile flash memory as well as DRAM (dynamic random access memory). These technologies are the backbone for enterprise storage and embedded memory on chips, which, needless to say, are very large markets.
Source: Fool.com
