U.S. stocks move | Netlist (NLST.US) surged up to 18%; Micron (MU.US) spent 600 millions USD to obtain five-year patent authorization and settled the lawsuit

According to Jin Zhitong Finance APP, on Tuesday, Netlist (NLST.US) shares rose, surging as much as 18% at one point. As of press time, the stock's gains narrowed to 13%, trading at $6.37. Previously, Micron Technology (MU.US) agreed to pay $600 million for a five-year license to Netlist’s patent portfolio, and both parties will end all unresolved legal litigation.

Under the agreement, the licensed patents cover server DIMM (dual in-line memory module) as well as high-bandwidth memory (HBM) technologies. Starting from the fourth quarter of 2026, Micron will pay Netlist $30 million per quarter until the third quarter of 2031.

Netlist CEO C.K. Hong stated that the agreement with Micron further validates the value of the company's AI memory technology. The company will continue to protect its own intellectual property rights while continuously investing in the development of next-generation products.

In addition to the patent license agreement, Netlist also signed a securities purchase agreement and a share lock-up and release agreement with Micron. Under the relevant arrangement, Micron will purchase 10 million Netlist shares for $1 million.

The restrictions on the sale and transfer of these shares will be lifted in stages. On the first, second, third, and fourth anniversaries after the stock issuance, 20% of the shares will be released each year, and the remaining shares will be released on the fifth anniversary.

This agreement not only brings $600 million in patent licensing income to Netlist, but also resolves all unfinished legal proceedings between the two memory chip companies in one go. Boosted by this news, Netlist shares surged as much as 18% in early trading on Tuesday.