Why has the Brainchip (BRN) share price surged?

Posted: 19 January 2022 12:38 pm
News
Brainchip-shares-19Jan_1800x1000_Finder

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.

Investor interest

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.

Serious about investing? Here's your new unfair advantage

Ticker Nerd uses advanced software to track hundreds of signals and data points to find stocks before they blow up. Don't miss out!
Get started for free

Think Brainchip shares are a buy?

If you are keen to buy shares in Brainchip Holdings you should consider investing through an online share trading platform.

Keep in mind that not all platforms offer the same list of stocks. Some trading platforms offer US stocks only, so make sure to select a platform that offers ASX-listed stocks.

Choose from the dozens available for Australian investors. Compare the features and fees from the plethora of trading platforms available for Australian investors.

Looking for a low-cost online broker to invest in the stock market? Compare share trading platforms to start investing in stocks and ETFs.

Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs and forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.

Get more from Finder

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.
Go to site