Brainchip (ASX:BRN) share price shoots 9% higher on software development centre

The Brainchip share price has jumped 9.3% to 47 cents following news the company has established a software development centre in India.

| More on:
A man looks stunned as a cloud explodes from his head representing the CogState share price crashing today in

Image source: Getty Images

The Brainchip Holdings Ltd (ASX: BRN) share price has jumped 9.3% to 47 cents at the time of writing. The sharp Brainchip share price movement comes following an announcement of the company establishing a software development centre.

This compares with the All Ordinaries Index (ASX: XAO) which is down 0.73% to 6,025 points.

Brainchip presence in India

In mid-afternoon trade, the Brainchip share price is surging after the company advised the market it has established a software development centre in Hyderabad, India. A leading provider of ultra-low power, high performance artificial intelligence (AI) technology, Brainchip will seek to support development of its Akida Neuromorphic System-on-Chip (NSoC).

The new asset addition is expected to concentrate on the software and firmware development of the Akida NSoC. This includes critical components such as software for device drivers, the CPU complex and firmware for commercial implementation.

The development centre will be staffed by five software engineers and local management. Brainchip said that it does not expect the new entity to add any incremental expenses to its historical cash flows. This is due to staff having previously served the company as contracted service providers over several quarters.

Brainchip also stated that it has provided funds for the new facility and cost of equipment.

The company’s India division will complement the team in France, which hones in on the software environment and networks on the Akida neuron fabric. The implementation is intended to provide ease of use and execution in leveraging ultra-low power, event-based capability.

What did management say?

Brainchip CEO, Louis DiNardo, validated the company’s new establishment to shareholders. He said:

We have established BrainChip Systems India to support the requirement for robust system software and firmware. As Akida is implemented commercially, it is important that our software is mature and provides a positive user experience.

Furthermore, Mr DiNardo commented:

We have a very seasoned management and engineering team in Hyderabad. Having a BrainChip entity in India will allow us to recruit and retain experienced engineering professionals as we expand operations to meet market demands. The India group has been working exclusively on Akida software and firmware development for several quarters and we are fortunate to have them join us as we bring Akida to market.

Is the Brainchip share price too cheap to ignore?

The Brainchip share price has taken shareholders on a wild ride in recent times. Brainchip shares started the year at 4.7 cents, and climbed to an all-time high of 97 cents. However, the last two weeks of heavy selling in Brainchip shares have been attributed to profit takers. Nonetheless, the Brainchip share price is still up over 1000% in the last nine months.

In my opinion, Brainchip has a lot of promise that could one day see it become a multibillion-dollar market cap share. Its advanced Akida chip may offer huge advantages for company projects such as NASA’s future missions.

At a market capitalisation of $700 million, Brainchip is still a small-cap share that is growing. Should the company be able to deliver on its potential, I think that the Brainchip share price is extremely attractive at a price of 47 cents.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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.

More on Share Market News

Top 10 ASX 200 shares today
Share Market News

Here are the top 10 ASX shares today

Here are your top 10 biggest gainers in the ASX 200 on Monday.

Read more »

blue arrows representing a rising share price ASX 200
Share Market News

Here are the 3 most heavily traded ASX 200 shares on Monday

We take a look at the most traded ASX 200 shares by volume today.

Read more »

Model bear in front of falling line graph, cheap stocks, cheap ASX shares
Share Market News

These are the 10 most shorted ASX shares

Short sellers are currently targeting these ASX shares...

Read more »

a man weraing a suit sits nervously at his laptop computer biting into his clenched hand with nerves, and perhaps fear.

Can regulators prevent another US$45 billion crypto stablecoin meltdown?

Terra's LUNA token, meant to help its UST token remain pegged to the US dollar, has lost 99.99% of its…

Read more »

A male sharemarket analyst sits at his desk looking intently at his laptop with two other monitors next to him showing stock price movements
Share Market News

ASX 200 midday update: Brambles rockets, Goodman upgrades guidance

The ASX 200 is having a decent start to the week...

Read more »

Smiling man with phone in wheelchair watching stocks and trends on computer
Share Market News

5 things to watch on the ASX 200 on Monday

Here's what to expect on the ASX 200 on Monday...

Read more »

Family of four celebrating inside a grocery store or supermarket
Share Market News

4 ASX shares of the most trusted brands in Australia

Which companies are best placed to attract the hearts, minds and wallets of consumers as interest rates rise?

Read more »

Coal-fired power station generic.
Energy Shares

How dependant on coal closure is the AGL share price?

Climate activists disagree with AGL's decision to hold onto coal, saying its depleting shareholder value.

Read more »