One of the biggest movers on the market today has been the Brainchip Holdings Ltd (ASX: BRN) share price.
In late morning trade the leading neuromorphic computing company's shares are up 19% to 19 cents.
Why are Brainchip's shares rocketing higher?
This morning Brainchip announced that it is the first company to bring a production spiking neural network architecture to market with the launch of its Akida Neuromorphic System-on-Chip (NSoC) product.
According to the release, management believes this positions the company as the leader in acceleration for artificial intelligence (AI) at the edge and the enterprise.
What does Akida NSoC do?
Management has advised that Akida NSoC is small, low cost and low power, making it ideal for edge applications such as advanced driver assistance systems (ADAS), autonomous vehicles, drones, vision-guided robotics, surveillance, and machine vision systems.
Its scalability allows users to network many Akida devices together to perform complex neural network training and inferencing for many markets including agricultural technology, cybersecurity, and financial technology.
This puts the company in a position to attempt to win a share of an artificial intelligence acceleration chipset marketplace which is estimated to be worth more than US$60 billion by 2025 according to market intelligence firm Tractica.
Should you invest?
This certainly is a positive development for the company and could easily be the start of something big. Because of this, I'm not overly surprised to see its shares rocket higher.
However, as with many companies at this stage of their development, I would suggest that investors remain cautious and keep it on their watchlist for the time being while waiting to see how the product launch impacts its sales over the next 12 to 18 months.
In the meantime, fellow small cap tech shares ELMO Software Ltd (ASX: ELO) and Volpara Health Technologies Ltd (ASX: VHT) could be worth a closer look.
