NLST Clocks Worst Day In 10 Months After Appeals Court Backs Micron On Five Patents — Roth Capital Continues To See Near 200% Upside

• Roth Capital analyst Suji Desilva reiterated a ‘Buy’ rating and a $15 price target on NLST following the ruling.
• The firm said the news is backward-looking because Netlist already has newer, related patents that stem from the same inventions.
• Roth added that it remains optimistic Netlist can sign more licensing deals in the memory industry.

Shares of Netlist (NLST) fell 22% on Wednesday, their worst day since October 2025, after a U.S. appeals court left in place rulings that wiped out five of the company’s memory patents in fights with Micron Technology, though Roth Capital dismissed it as “backward-looking.”

Analyst Weighs In

Roth Capital analyst Suji Desilva reiterated a ‘Buy’ rating and a $15 price target on NLST following the ruling. The firm said the news is backward-looking because Netlist already has newer, related patents that stem from the same inventions. Roth added that it remains optimistic Netlist can sign more licensing deals in the memory industry.

Roth Capital’s price target implies a potential upside of about 190% from the stock’s closing price on Wednesday.

What The Court Decided

A U.S. appeals court on Wednesday backed Micron, leaving in place Patent Office rulings that invalidated five Netlist memory patents.

All five patents cover methods for building and operating computer memory modules. The Patent Office had already found the ideas too close to older published designs. Samsung first challenged several of them. Micron joined. Samsung later settled with Netlist and left some of the cases. Micron did not.

Netlist appealed, arguing the older designs worked differently. The same three-judge panel, in three related opinions issued the same day, disagreed and upheld the Patent Office in each case. The court said there was enough evidence the inventions were obvious.

The rulings close these five patents. They do not decide Netlist’s other patents or its remaining licensing and trade cases against Micron.

How Did NLST Retail Traders React?

On Stocktwits, retail sentiment around NLST stock remained within the ‘bullish’ territory over the past 24 hours, while message volume rose from ‘normal’ to ‘high’ levels.

A Stocktwits user said that the stock sold off on an old, unfinished Texas case. They noted that the rest of the legal fight with Micron is still on, and Micron will eventually have to license or face worse cases.

Another user opined that NLST will eventually deliver over 300% gains despite today’s ruling.

NLST stock has gained nearly 481% year-to-date, partly owing to a five-year Samsung alliance that included access to patents, memory supply, and an equity stake.

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