BrainChip (ASX:BRN) share price slides despite AI summit invitation

BrainChip shares have slipped into the red today despite a recent rally on the charts

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The BrainChip Holdings Ltd (ASX: BRN) share price has started today's session in the red.

BrainChip shares are trading lower today despite an extended run into the green recently. At the time of writing, shares are changing hands for 53 cents, down 2.75% on yesterday's close.

Let's discuss what's behind the BrainChip share price lately.

A woman works on an openface tech wall, indicating share price movement for ASX tech shares

Image source: Getty Images

A bit more on BrainChip

BrainChip has unique expertise in artificial intelligence (AI). Specifically, the company's expertise is in neumorphic computing, which replicates the function of human neurons.

As a result, its flagship segment is the Akida neuromorphic processor unit. According to BrainChip, the Akida unit is "a new breed of neural processing computing devices".

At the time of writing, BrainChip has a market capitalisation of $796 million.

What's did BrainChip get invited to?

The AI Hardware Summit is an annual event that aims to unite the global AI ecosystem. This year, for instance, the theme is "lifting the hood" on AI affordability and efficiency.

It is being held on 13-15 September, and will be run as a "hybrid" event this year. This means the summit will take place in California but will also be live streamed, due to travel restrictions

BrainChip recently announced its vice president of worldwide sales and marketing, Rob Telson, will speak as a "featured presenter" at the event.

Telson will detail "real-life examples of (Akida's) on-chip and off-chip functionality" in the presentation, which is titled "Intelligent AI Everywhere".

Attendees will also observe Akida's propensity to integrate "efficient" AI within edge devices, by implementing the company's intellectual property to "solve critical problems of privacy, security, latency and low power requirements".

Moreover, attendees can view demonstrations of Akida's capabilities at BrainChip's in-person booth during the event.

Investors have been pushing up BrainChip shares since this release on 5 August.

To illustrate, BrainChip shares finished yesterday at 55 cents, a 13.5% jump on the previous day's close. Over the past week alone, BrainChip shares have climbed a further 19% into the green.

However, the BrainChip share price has exhibited selling pressures in early trade today, slipping by 2.75% into the red from the market open.

There are many reasons a company's share price may fall in the interim, despite a run of positive fundamental momentum. Profit taking by large institutions is one example, while executives selling their own shares can exhibit the same patterns.

BrainChip share price snapshot

The BrainChip share price has posted an outsized return over the year to date, climbing 23% into the green since January 1.

This extends the previous 12 month's gain of 203%, which has far outpaced the S&P/ASX 200 Index (ASX: XJO)'s climb of around 25% over the past year.

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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