NVE Corp (NDAQ:NVEC) has been experiencing continued volatility recently, nearly retesting its high of $37 after moving up over 12% in mid-day action on huge volume. NVE is most known as the maker of MRAM, which is being heralded as the next generation of Random Access Memory after SRAM and DRAM. Although several other companies (including
IBM (NYSE:IBM) and
Infiniteon (NDAQ:IFX)) are
developing MRAM technologies, NVE is the sole owner of the patent on
its so-called "spintronics" methodology. This technique relies on an electron's spin rather than its charge, which makes it many times faster and denser than existing RAM.
So, what's causing this rise? The two predominant rumors on the market are that (1) Freescale Semiconductor (NYSE:FSL) may be infringing upon some of NVE's MRAM-related patents, which may eventually result in licensing deal, and (2) that
IBM (NYSE:IBM) may be reconsidering a partnership deal with the company with the announcement of a new storage system. Note that there have been insider acquisitions of stock, but very little insider purchasing - which would further confirm a possible licensing or partnership deal. Any announcements will likely come in the form of an 8K, so
watching for that filing along with Form 4's would be a good idea for those interested in
following this company.
Related CompaniesIBM (NYSE:IBM)Infiniteon (NDAQ:IFX)