Here’s why the Brainchip Holdings Ltd share price went nuts today

One of the biggest movers on the market today has been the Brainchip Holdings Ltd (ASX: BRN) share price.

At the time of writing the artificial intelligence company’s shares are up 20% to 24 cents.

Today’s gain is the result of a positive announcement relating to its revolutionary new Spiking Neuron Adaptive Processor (SNAP) technology.

The SNAP technology has been designed to learn autonomously, evolve, and associate information just like the human brain.

It has received a lot of attention in recent months following its deployment in several U.S. casinos. The company’s Game Outcome solution utilises SNAP to determine cards and outcomes in real‐time, while monitoring and providing alerts for gaming operators.

But its use doesn’t stop there. Today the company announced that it has signed a protocol evaluation agreement with the Toulouse branch of the French National Police.

According to the release the Toulouse branch has been mandated by the French National Police to perform the evaluation of advanced forensic video analytic technologies.

They will evaluate the company’s SNAPvision technology which enables law enforcement personnel to rapidly scan through terabytes of recorded video to search for identifying characteristics such as faces, body shapes, and clothing patterns.

What’s next?

While no financial terms were discussed, I can still understand why investors have responded positively to the announcement.

Should the evaluation go well I wouldn’t be surprised to see the technology rolled out across all branches of the French National Police.

Considering how tense the situation is in France following recent terrorist attacks, this sort of technology could prove to be invaluable.

Should you invest?

I’ve been very impressed with the technology and I think there are countless ways for the company to monetise it.

But with a market cap of almost $150 million, there’s an awful lot of growth built into its share price today.

Because of this I would suggest investors hold off an investment until there are signs that it can live up to the market’s high expectations.

In the meantime an investment in fellow tech shares Altium Limited (ASX: ALU) and Appen Ltd (ASX: APX) could be better options in my opinion.

Alternatively, one of these explosive growth shares could be an even better investment. I think each looks set to smash the market this year.

Top 3 ASX Blue Chips To Buy In 2017

For many, blue chip stocks means stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool's in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool's Top 3 Blue Chip Stocks for 2017."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

If you're expecting to see the likes of Commonwealth Bank, Telstra and Wesfarmers shares on this list, you'll be sorely disappointed. Not only are their dividends growing at a snail's pace, their profits are under pressure too due to the increasing competitive environment.

The contrast to these "new breed" blue chips couldn't be greater... especially the very real prospect of significant share price gains, something that's looking less likely from the usual blue chip suspects.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand - and how quickly the share prices of these companies moves - we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia owns shares of Altium and Appen Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.