Why the BrainChip (ASX:BRN) share price is sinking 9% today

It hasn’t been a good day for BrainChip’s shares….

| More on:
Man in shirt and tie falls face first down stairs

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The BrainChip Holdings Ltd (ASX: BRN) share price has started the week deep in the red.

In morning trade, the artificial intelligence technology company’s shares are down 9% to 55 cents.

Why is the BrainChip share price sinking?

The BrainChip share price has come under pressure on Monday after announcing the appointment of its new Chief Executive Officer (CEO).

According to the release, the company has appointed Sean Hehir as its new CEO, with effect from 29 November 2021.

He will be replacing former CEO Louis DiNardo who left the company suddenly in March after leading the company for four and a half years.

The release advises that Mr Hehir is a proven technology executive with significant experience in driving revenue growth for technology organisations. This includes sales-based executive roles with Compaq, Fusion-io, and HP.

He will be tasked with guiding the company towards full commercialisation of the Akida neuromorphic computing platforms out of the Aliso Viejo office in California.

Why the poor reaction?

Judging by the BrainChip share price performance today, it appears that investors were hoping for a more experienced CEO or one with a background in artificial intelligence.

Nevertheless, BrainChip’s Founder and Interim CEO Peter van der Made was pleased with the appointment.

He said: “As outgoing (interim) CEO, I welcome Sean to the company and am happy to hand over the reins of a world-class company that is in an excellent position to commercialize our unique product that is years ahead of the competition. We have every confidence that Sean is the right executive to guide BrainChip into the future, to make sound decisions about the business opportunities before us and ignite industry enthusiasm for the new AI capabilities that are made possible by Akida.”

“After more than a decade of R&D and design, he will lead the shift into commercialization and bringing new technologies to life, which has long been our vision,” he added.

The BrainChip share price is up almost 30% in 2021.

Motley Fool contributor James Mickleboro has no position 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.

More on Share Fallers

Red arrow going down and symbolising a falling share price.
Share Fallers

Why the Paladin share price fell 25% in June

Uranium shares softened in June.

Read more »

An engineer takes a break on a staircase and looks out over a huge open pit coal mine as the sun rises in the background
Resources Shares

Why did the Rio Tinto share price plunge 11% in June?

Let's analyse the month just gone by.

Read more »

Red arrow going down with share prices in red symbolising a falling share price
Share Fallers

Why Argosy Minerals, BHP, Ingenia, and Woodside shares are dropping today

These ASX shares are ending the week in the red...

Read more »

a person holds their head in their hands as they slump forward over a laptop computer which features a thick red downward arrow zigzagging downwards across the screen.
Share Fallers

The Lake Resources share price plummeted 49% in June. Here’s why

It was a month to forget for the ASX lithium share. Here are the details.

Read more »

a sad looking engineer or miner wearing a high visibility jacket and a hard hat stands alone with his head bowed and hand to his forehead as he speaks on a mobile telephone out front of what appears to be an on site work shed.
Share Fallers

What’s clamping down on the Piedmont Lithium share price?

Investors are continuing to punish the lithium developer.

Read more »

Woman has a confused expression as she looks at phone.
Share Fallers

Why did the Soul Pattinson share price go backwards in June?

June was a tough month for the investment conglomerate. What happened?

Read more »

ASX shares COVID the words crash with a declining arrow on top
Share Fallers

These were the worst performing ASX 200 shares in June

It was a bad month for the ASX 200 but an even worse month for these shares...

Read more »

Man with his head on his head with a red declining arrow and A worried man holds his head and look at his computer as the Megaport share price crashes today
Industrials Shares

Why is the Electro Optic Systems share price hitting a new 52-week low?

Selling pressure has rolled over into today's session after Wednesday's collapse

Read more »