Why Is MRAM Stock Surging Premarket Today?

• The deal is worth over $40 million over two and a half years.
• Toggle MRAM is a type of memory that stores data using magnetic states instead of electric charge. 
• On Stocktwits, message volumes jumped 46.7% over the past 24 hours as it stayed at ‘extremely high’ levels.

Shares of Everspin Technologies Inc. (MRAM) rallied more than 11% in Monday’s premarket trading session as optimism over its $40 million defense deal announced last week continued.

Retail interest around the stock increased, with many investors debating the company's long-term potential. On Stocktwits, message volumes jumped 46.7% over the past 24 hours as it stayed at ‘extremely high’ levels.

Deal Contours

Last week, Everspin Technologies said that it had expanded a deal with the United States Defense Industrial Base customers to provide its on-shore Toggle Magnetoresistive RAM (MRAM) technology capabilities.

Toggle MRAM is a type of memory that stores data using magnetic states instead of electric charge. It allows “non-volatile” memory storage, which functions even without power, enabling “instant-on” capability, strong data protection, and high reliability.

The company, acting as a subcontractor under an existing prime contract, will provide engineering and foundry services for the U.S. Department of War. Backed by its U.S.-based manufacturing partnership with Microchip, the deal is worth $40 million over two and a half years and aims to support evolving defense program requirements.

Retail Stance

On Stocktwits, retail sentiment around MRAM stock stayed in the ‘extremely bullish’ territory at the time of writing.

One bullish user said, “dont sell, this is just the start. Compare it to other AI play and make your own conclusion. They have several product out on the market.”

Another user estimated MRAM shares would close at $25 on Monday. The stock was trading above $23 at the time of writing.

A third user said the company’s market capitalization of around $500 million was “ridiculous,” adding that it should be trading above $1 billion.

MRAM stock has gained more than 113% this year.

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