California-based neural computing technology company Brainchip Holdings Ltd (ASX: BRN) came out of its trading halt this morning with a bang.
Its shares opened 16% higher at 25 cents after the company responded to an article published in the Australian Financial Review on Monday.
Whilst the company has dismissed the majority of the claims from the article, it did reveal a couple of interesting developments which appear to have caught the eye of investors today.
Before getting to that though I feel it's appropriate to explain exactly what Brainchip does. The company is a leading provider of software and hardware solutions for advanced artificial intelligence and machine learning applications.
Its shares have been on a tear in recent weeks after it announced the roll out of its innovative casino table security monitoring technology across the baccarat tables of one of Las Vegas' biggest casinos.
The Game Outcome technology uses the company's SNAPvision technology to visually and automatically detect dealer errors by monitoring the video streams from standard surveillance cameras.
But the technology doesn't stop at casinos. Within its release today management revealed that it has received interest from a large European industrial company over the potential use of its technology in a visual inspection system for its manufacturing process. The technology is on trial, but there is no guarantee of an agreement at this stage.
Furthermore, the company revealed trials have commenced with a European law enforcement agency and within a school district in the state of New York.
I'm not surprised to see the shares rally on this news. This exciting technology clearly has potential and I'm pleased to see its use expand beyond casinos.
But just as I said last time, it is still a little too early for an investment for me. As exciting as the technology is, I'd suggest investors wait and see how these trials go before making an investment.
In the meantime tech companies such as Aconex Ltd (ASX: ACX) and Altium Limited (ASX: ALU) might be better options for investors today.
