Why has the Brainchip (BRN) share price surged?
Shares in tech junior Brainchip have more than doubled over the past month continuing their hot run today.
Shares in technology firm Brainchip Holdings (ASX: BRN) have topped the list of most traded shares on the ASX despite a selloff in the sector. Market favourites Xero (ASX: XRO) and WiseTech Global (ASX: WTC) shed between 2% and 3%.
But the Brainchip stock was up more than 20% in early trading on Wednesday to $2.24, building on recent momentum that has seen it more than double in the past month alone.
What is behind the jump in the BRN stock price?
Brainchip announced on Wednesday that it's been granted a patent by the US Patents and Trademarks Office for technology that would advance applications for its neuromorphic processor.
The US patent, the company’s eighth since 2008, relates to "Event based Classification of Features in a Reconfigurable and Temporally Coded Convolutional Spiking Neural Network".
It would essentially enable complex tasks to be performed on a digital input data, thus allowing artificial intelligence to process images and allow a wide range of existing applications to be ported to its Akida neural processors.
“As the world’s first and only commercial producer of neuromorphic artificial intelligence chips, Akida1000, we must maintain our lead over our competitors by ensuring our unique and revolutionary technology is protected and secure,” founder and chief technology officer Peter van der Made said in a statement to the ASX.
Shares in the tech junior have seen a sharp lift in recent months, after a series of positive announcements related to its Akida AI processor chips.
Earlier this month, news reports said Mercedes-Benz will use Brainchip’s proprietary neural processing hardware and software in its latest electric vehicle, the Vision EQXX concept car.
BrainChip this month also began taking orders for the first commercially available Mini PCIe board that uses its Akida advanced neural networking processor. The boards, plugged into a developer’s existing system, can unlock capabilities for a wide array of AI applications that include Smart City, Smart Health, Smart Home and Smart Transportation.
In November last year, it also announced a licensing agreement with Japanese semiconductor manufacturer Megachips granting it a worldwide intellectual property licence for use in designing and manufacturing its Akida technology.
Last week, Brainchip said it would sell 15 million shares through a capital call under an ongoing agreement with investor group LDA Capital.
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