NLST Stock Sees Biggest Single-Day Gain In 5 Years After Samsung Ends Patent Fight, Takes 10M Share Stake

• Netlist signed five-year agreements with Samsung covering patent licensing, memory supply, technology collaboration, and a 10 million share investment.
• The agreement settles all pending litigation between the two companies, including ITC actions.
• The partnership follows multiple jury verdicts that awarded Netlist more than $420 million in patent damages against Samsung.

Shares of Netlist (NLST) were on track to record their biggest single-day gain in over five years after the company announced a strategic alliance with South Korean technology giant Samsung that ends years of patent litigation and establishes a new commercial partnership.

NLST stock jumped over 40% in midday trade to levels not seen since May. On Stocktwits, retail sentiment around the shares improved to ‘extremely bullish’ from ‘bullish’ territory over the past day, accompanied by chatter at ‘high’ levels.

The agreements cover a patent portfolio cross-license, a long-term memory supply agreement, technology collaboration, and Samsung's purchase of 10 million Netlist shares. The deal also settles and mutually releases all pending litigation.

Samsung Ends Patent Battle With Netlist

The settlement follows years of courtroom battles. Netlist had accused Samsung of breaching an earlier joint development and license agreement after allegedly failing to meet supply obligations, prompting Netlist to terminate the agreement in 2020.

Subsequent jury verdicts found Samsung had willfully infringed Netlist patents, awarding the company $303 million in 2023 and another $118 million in 2024.

Under the five-year arrangement, Samsung will receive access to Netlist's patent portfolio, including technologies covering server DIMMs and High Bandwidth Memory (HBM). In return, Samsung will supply Netlist with DRAM and NAND products while the companies collaborate on future memory technologies.

The announcement also mirrors Netlist's existing relationship with SK Hynix (SKHY). In 2021, the company signed a five-year cross-license and supply agreement with SK Hynix that included collaboration on Netlist's CXL HybriDIMM technology. That agreement is scheduled to expire in 2026.

How Is Retail Feeling About NLST Stock?

According to one retail trader on Stocktwits, Netlist’s deal with Samsung may be the first of many. They expect more deals to come down the pipeline with SK Hynix, Micron (MU), and others in the space.

Unlike Samsung and SK Hynix, Micron has not signed a cross-license with Netlist. A jury in 2024 awarded Netlist $445 million after finding Micron willfully infringed its patents, though the case remains under appeal and additional legal proceedings continue.

NLST shares have gained over 300% this year, and more than 450% in the last 12 months. 

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