What happened
Investors in tech hardware makers often get excited when their companies roll out new products, and that was the situation with Enovix (ENVX +8.96%) on Tuesday. The maker of cutting-edge silicon batteries introduced its latest offering, a move that was met with a nearly 4% bump in its share price. That was more than good enough to outpace the S&P 500 index, which got a comparatively modest 0.7% lift on the day.
So what
Prior to market open today, Enovix announced the general availability of said product, its standard-sized Internet of Things (IoT) and wearables cell.
That wouldn't be impressive in and of itself in a market full of such goods. The difference is that, according to the company, it has a capacity advantage that can be up to double that of current offerings from rivals.
Enovix took pains to go into detail about its cells, writing that they are custom made with the use of accurately aligned, laser-cut electrodes. Not only is this a precision process, it also allows for "volumetric and active material packing efficiencies, as well as accommodating the use of a 100% active silicon anode," in the company's words.
The battery maker says they can be cycled more than 500 times to 80% retention.
NASDAQ: ENVX
Key Data Points
Now what
While Enovix did not provide any production, sales, or profitability estimates for the new cells, its assertion that they have much higher capacity is certainly worth paying attention to. It remains to be seen whether this can translate into solid and sustained business for the company, however.
