Why is the BrainChip share price rocketing 15% higher today?

BrainChip shares are racing higher on Monday morning…

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Key points

  • BrainChip shares are rocketing higher on Monday morning
  • This appears to have been driven by a press release
  • BrainChip has confirmed that it has been accepted into the Arm AI Partner Program

The BrainChip Holdings Ltd (ASX: BRN) share price is starting the week very strongly.

In morning trade, the artificial intelligence (AI) technology company’s shares are up 15% to $1.35.

Why is the BrainChip share price charging higher?

Today’s gain by the BrainChip share price appears to have been driven by a press release relating to the company’s acceptance into a partner program.

According to the release, the company has been accepted into the Arm AI Partner Program. This is an ecosystem of hardware and software specialists enabling developers to deliver the next generation of AI solutions.

Arm is one of the biggest names in AI. It is a UK-based semiconductor company that designs the components of processors for others to ultimately build.

Earlier this year, tech giant Nvidia attempted to acquire Arm for US$40 billion before the deal ultimately collapsed due to regulatory issues.

Arm AI Partner Program

The release explains that Arm’s extensive AI ecosystem simplifies AI deployment by providing best-in-class tools, algorithms, and applications to customers worldwide.

It also creates and nurtures strategic alliances that “empower” its ecosystem to drive innovation, provides technical support and resources, and helps partners reach developers and decision-makers within their target markets.

Mohamed Awad, vice president of IoT and Embedded at Arm, said: “As part of the Arm AI Partner Program, BrainChip will further enable developers to meet the need for high-performance and ultra-low power edge AI inference, unlocking new opportunities for innovation.”

However, it might be a little soon to get overly excited. BrainChip is certainly not the only edge AI-focused company in the program. This serves as a reminder that there’s still a long road ahead for BrainChip and no guarantee of success despite what its $2 billion+ market capitalisation might indicate.

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 Scott Phillips.

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