This year so far has been a rollercoaster for the Brainchip Holdings Ltd (ASX: BRN) share price and it's been plunged into another loop-the-loop today.
The company's stock is tumbling despite no news having been released on it for more than a week. Though, it's not alone in its slump.
At the time of writing, the Brainchip share price is $1.52, 5.74% lower than its previous close.
For context, the broader market is in the green today. The S&P/ASX 200 Index (ASX: XJO) is currently up 0.4%. Meanwhile, the All Ordinaries Index (ASX: XAO) has gained 0.3%.
Let's look at what might be weighing on the artificial intelligence focused ASX tech share today.
Why is the Brainchip share price plunging lower today?
The Brainchip share price is handing back some of its lofty year-to-date gains this morning as the S&P/ASX All Technology Index (ASX: XTX) slips lower again.
The index has fallen a notable 18.4% since the start of this year. It's falling another 1.1% today, potentially driven lower by the tech-heavy Nasdaq Index's 2.7% tumble on Friday.
Meanwhile, prior to today, the Brainchip share price had gained a whopping 108% year to date.
It's been rocketed by news of a capital injection, two new patents – one in January and another in February, and a strong December quarter performance.
In fact, its early January gains were so severe that the ASX issued it with a speeding ticket. In response, the company said it was as confused as anyone.
Though, it pointed to its release of immaterial news and excitement over the AI industry as potential reasons for its gains.
But that excitement – if it were indeed the reason behind Brainchip's surge – appears to have waned this morning.
Additionally, while there's been no news of Brainchip the company for more than 10 days, disturbing headlines regarding brain chips have recently emerged.
The reports are unlikely to have had any impact on the Brainchip share price. Particularly, given the company is in no way involved with the claims or the company involved.
However, stranger things than what could be a case of mistaken identity have impacted the market sentiment of a sector before.
A case of mistaken identity?
In recent days, news has emerged detailing alleged animal abuse committed during product testing for Elon Musk-backed brain chip start-up, Neuralink.
Neuralink is developing implantable technology that could interact with the brain to help people with paralysis control computers and devices. It's a far cry from Brainchip's work in the AI field.
According to reporting by Business Insider, published late last week, Neuralink is facing potential action on claims that monkeys were forced to withstand "extreme suffering" during testing for "highly invasive experimental head implants."
An animal rights group reportedly plans to hand records of the alleged abuse to the United States Department of Agriculture.
The testing is said to have been conducted by a research centre affiliated with the University of California between 2017 and 2020. Neuralink reportedly cut ties with the university when the monkeys were transferred to its own facility in 2020.
