The BrainChip share price just plunged 8%, what happened?

BrainChip shares were down 8% at one point today. What on earth is going on?

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It’s been a pretty depressing old time for ASX shares so far this Thursday. Today has seen the All Ordinaries Index (ASX: XAO) drop by 1.57% at the time of writing after an initial fall of just over 2% this morning. But the BrainChip Holdings Ltd (ASX: BRN) share price has had a far worse time of it today.

BrainChip shares are presently down by a meaty 3.81% to $1.14 each after closing at $1.18 a share yesterday. That’s a vast improvement on where things stood earlier in the trading session though. Soon after market open, BrainChip descended all the way down to just $1.08 a share. That represented a drop of almost 8.5% at the time.

So why is the BrainChip share price copping such a beating today?

Why did the BrainChip share price plunge 8% today?

Well, it’s got nothing to do with any news or announcements out of the artificial intelligence company (AI) itself. There haven’t been any ASX releases from BrainChip since 6 May. That was when the company was issued a speeding ticket from the ASX for a rather inexplicable 11% share price surge on a day when most shares were falling.

Unfortunately for investors, BrainChip shares certainly aren’t bucking the market today.

So we can possibly conclude that today’s BrainChip share price woes are a result of the sector-wide sentiment we seem to be seeing in ASX tech shares.

Most ASX tech shares have endured a prune so far today. Altium Limited (ASX: ALU) shares are presently down around 4%. Xero Limited (ASX: XRO) is down more than 3%, while WiseTech Global Ltd (ASX: WTC) has lost close to 2%. BrainChip shares tend to move big when they move, so while today’s pricing has been dramatic, it’s arguably not entirely surprising.

At the current Brainchip share price, this ASX AI share has a market capitalisation of $2.02 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 positions in and has recommended Altium, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. 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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