DorsaVi (ASX:DVL) now has a double tailwind across its addressable markets after securing two important IP licensing technologies.
The first was the acquisition of ReRAM, or resistive random access memory, from Nanyang Technological University. The second was the acquisition of processing-in-memory and neuromorphic AI memory architectures from Technion in Israel.
For investors, the key point is that DorsaVi is now looking to collaborate with third-party engineering partners to accelerate its memory development pathway. The company is aiming for sub-22nm ReRAM, after already demonstrating the technology at a more mature 40nm node.
That scaling step matters. Moving below 22nm could improve storage density, reduce power consumption, and increase speed, opening the door to more integrated applications where ReRAM can add real value.
Based on our sum-of-parts valuation, we think DorsaVi could reach A$0.22 per share. We value the sensory business at A$0.13 per share and the ReRAM business at A$0.09 per share.
We recently published a research note on DorsaVi and what the future could look like for the company.
The Milestones Over the Next 12 Months for a Re-Rate
Getting straight into it, what investors really want to know is simple. What are the key re-rating milestones ahead for DorsaVi?
DorsaVi is still early in its product development cycle, so the market is likely to reward engineering and technology milestones more than near-term revenue.
The major de-risking milestone is the manufacturing recipe. Investors need to see whether DorsaVi’s ReRAM can be integrated into semiconductor process flows, scaled to 22nm, and then tested against performance benchmarks that show the memory cell operates better than it did at 40nm.
Put simply, the key test is whether DorsaVi can develop a repeatable recipe that proves its ReRAM can scale toward production.
If it can, we think this could spark a meaningful re-rate.
These are technical milestones, and they will likely be the main focus for investors over the next 12 months.
Ultra Edge AI Looks to Cut the Cloud Loop
If we think about where the market is heading, one of the key themes is Edge AI.
As more products integrate sensors, those sensors generate huge volumes of raw data. Right now, much of that data is sent to the cloud, processed in a data centre, and then sent back to the device.
That creates three big problems. It consumes a lot of power, especially for sensors running 24/7. It adds latency because the data has to move back and forth. It also increases the risk of data leakage while information is being transferred.
This is where DorsaVi’s ReRAM opportunity becomes interesting.
The company is directing much of its firepower toward this market because Edge AI needs memory that is faster, lower power, and more efficient at the device level.
If DorsaVi’s processing in memory also integrates into products, this removes the need to transfer much of the ‘useless’ data around.
The addressable market is large. IDC forecasts worldwide edge computing spending to reach nearly US$261 billion in 2025, rising to around US$380 billion by 2028. Within that, Edge AI is one of the higher-growth segments. The market is estimated at roughly US$29.9 billion in 2026 and is expected to grow into the mid-US$60 billion range by 2030.
That makes this a large and still underdeveloped market, but the key point is simple. Edge AI needs better memory to cut power, cost, latency, and data movement. That is the gap DorsaVi is trying to solve.
The Investors’ Takeaway for DorsaVi
With DorsaVi currently trading around A$0.035 per share, we see meaningful upside if the company delivers against the milestone pathway built into our base valuation.
If DorsaVi achieves these technical milestones, a re-rate would be warranted. It would materially improve the medium-term prospects of the ReRAM business and reduce the risk profile of the investment case.
The key technical risk is not whether ReRAM works. It is whether DorsaVi’s ReRAM stack can be integrated into semiconductor manufacturing flows and scaled in a repeatable way.
We also recognise that the company’s collaborations with Nanyang Technological University and ITRI are credible and support technical de-risking. But reliance on third-party research institutes adds commercial execution risk.
The success of the ReRAM opportunity ultimately depends on technical viability becoming manufacturable, repeatable outcomes. When key parts of that pathway sit outside the company, investors need to factor in execution dependence. More coverage of ASX technology and semiconductor names is available at stocksdownunder.
Pitt Street Research Directors owns shares in the company discussed. This article reflects personal views and is not financial advice.
