BlackBerry surges as software reinvention spurs retail attention

This message is brought to you by the mid-2000s: BlackBerry shares are surging in early trading.

But the once iconic smartphone maker finds itself back in the spotlight through software, not hardware.

The move follows renewed attention to its QNX software business after a Wall Street Journal report highlighted the unit’s growth, particularly in the automotive industry. This division accounts for roughly half of the company’s revenue, with the technology now embedded in roughly 275 million vehicles, powering features like driver assistance and infotainment.

BlackBerry reported its Q4 earnings in early April, with revenue of $156 million surpassing the top end of its guidance. That was fueled by stronger-than-expected sales across both its QNX and Secure Communications divisions. Shares then spiked later in the month after BlackBerry enhanced its partnership with Nvidia by integrating QNX with the chip designer’s robotics development platform.

The stock is up more than 50% year to date, making it one of the few stocks to go gangbusters thanks to its performance in software, an industry bedeviled by the competitive threat from AI.

Its recent hot run has come alongside more bullish activity in options markets. Less than half an hour into today’s session, more than 31,000 calls have already changed hands, roughly half of the full-day average over the past 20 days. The name also appears to be attracting retail attention, being one of the 15 most referenced tickers on the r/WallStreetBets subreddit over the past 12 hours, per SwaggyStocks.