MENU

Why the Brainchip Holdings Ltd (ASX:BRN) share price rocketed higher today

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.

Alternatively, here is another way to play the AI boom.

Japanese Billionaire’s Prediction Will Give You Goosebumps

When a veritable investing and entrepreneurial genius speaks, it pays to listen.

In fact, he's now preparing a $100B "war chest" to invest entirely in this "terrifying" new technology, which could spell huge profits for investors.

Click here to learn about this technology and how you can profit!

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended ELMOSFTWRE FPO and VOLPARA FPO NZ. 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 Scott Phillips.

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.