Sondrel surges on Neuralink speculation

8th Feb 2024 12:28

(Sharecast News) - Sondrel shares rocketed on Thursday after the Daily Mail reported that a key part of Elon Musk's Neuralink brain chip was created by the AIM-listed company, which provides "ultra-complex chips" for technology brands.

According to the Daily Mail, Sondrel assisted with some of the semiconductor technology that allows Neuralink's implants to function.

It noted that Sondrel is just one of a handful of companies capable designing and supplying the higher-spec chips required. Others are based in Asia and considered vulnerable to Chinese interference.

The Mail said the project is subject to multiple non-disclosure agreements, meaning the precise role played by British designers - and the number of other companies involved - is "shrouded in secrecy".

However, a source with knowledge of the project suggested that Sondrel played a key role in assisting Neuralink, which successfully implanted a chip in a patient's brain for the first time on Sunday.

"Sondrel solved a problem that others could not, and that was necessary for the finished product, so it played a pretty significant role," the source told MailOnline.

It was understood there is no material financial benefit for Sondrel from its partnership with Neuralink, but it is likely to boost the company's reputation among potential customers and investors.

Responding to the surge in its share price on Thursday, Sondrel simply pointed out that it "remains one of only a few companies capable of designing and supplying higher-spec, complex chips built on the most advanced semiconductor technologies".

It added that its customer base "continues to include leading global technology brands".

In a brief statement, it said: "The company remains encouraged that demand for Sondrel's ASIC services, including in the US, remains strong and that the group continues to trade in line with current market expectations with a number of new ASIC business opportunities at advanced stages of negotiation.

"The group does not comment on the identity of customers."

At 1255 GMT, the shares were up 127% at 13.50p.