On a dire day for the ASX, the BrainChip share price just leapt 11%. What’s going on?

Why are BrainChip shares acting so strangely today? Let’s take a look

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Key points

  • ASX 200 shares are getting smashed today
  • Some of the worst performers have been ASX tech shares
  • However, artificial intelligence company BrainChip didn't get the memo

It’s been a rather dire day of trading for ASX shares. So far this Friday, the S&P/ASX 200 Index (ASX: XJO) has lost a dreadful 2.2% and is almost back under 7,200 points.

As is usual during red days lately, it is the ASX tech sector that is leading these losses. The S&P/ASX All Technology Index (ASX: XTX) has lost close to 4.5% today. But the BrainChip Holdings Ltd (ASX: BRN) share price is proving to be a very notable exception.

BrainChip shares are bucking both the ASX tech sector and the broader market today. And not by a little either. The artificial intelligence (AI) company is currently up by a healthy 2.93% at $1.055 a share, making it one of the best performing shares on the entire share market.

Not only that, but earlier in today’s session, BrainChip rose as high as $1.20 a share, which was a gain of around 11% at the time.

So what is causing this marked outperformance today?

Why is the BrainChip share price defying the ASX’s gloom today?

Well, unfortunately, we might need to call in the Scooby Doo van, because it’s a darn mystery. There hasn’t been a peep from BrainChip today in terms of any news, developments, or announcements.

In fact, today’s rise has been so unusual in its nature that BrainChip actually received an ASX ‘speeding ticket’ this afternoon from the ASX itself. Responding to this ASX price query, BrainChip told the markets that it wasn’t aware of anything that could explain the behaviour of its shares today.

BrainChip shares have been on the rise lately. The company is up around 11% over the past five trading days. it is also up 13% over the past month, and almost 34% in 2022 so far. So maybe investors are so keen to see BrainChip continue with this momentum, they are ignoring the moves of the broader market.

But it’s hard to say for sure what’s going on.

But what is clear is that it has been a very pleasing day for BrainChip shares.

At the current BrainChip share price, this ASX artificial intelligence share has a market capitalisation of $1.84 billion.

Motley Fool contributor Sebastian Bowen 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 Scott Phillips.

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