The BrainChip Holdings Ltd (ASX: BRN) share price has had a poor run in the past week.
Since last Wednesday, the artificial intelligence (AI) technology company's shares have shed a touch over 16%.
In particular, the BrainChip share price has been deep in the red across the last three trading days.
At yesterday's market close, BrainChip shares ended the day 5% down at 95 cents apiece.
What's driving BrainChip shares lower?
While the company has been relatively quiet on the news front, investors have been offloading BrainChip shares nonetheless.
This could be due to some investors feeling concerned the company's market capitalisation has gotten ahead of itself. BrainChip is currently valued at $1.71 billion.
However, with such a lofty market cap, it's worth noting that the company generates very little revenue.
In its last quarterly report for the period ending 31 March, BrainChip received US$0.2 million in cash receipts from customers. And that's a decrease of 81% from the prior US$1.1 million collected in Q4 FY21.
Furthermore, BrainChip shares rose strongly last month following investor hype surrounding the company's acceptance into the Arm AI Partner Program. It appears this positive sentiment is now wearing off.
In more positive news, earlier this month, the S&P Dow Jones Indices announced some changes in its quarterly rebalance. As part of the rebalance, Brainchip shares will be added to the S&P/ASX 200 Index (ASX: XJO) from 20 June.
Many fund managers operate to an investing mandate that permits them to only buy shares included in specific indexes. So, shares can experience a boost after being included in a particular index due to the fact they are accessible to more institutional investors.
BrainChip share price snapshot
Regardless of treading lower in recent times, the BrainChip share price has gained almost 70% over the last 12 months.
When looking at year-to-date performance, the company's shares are up around 40%.
BrainChip has approximately 1.74 billion shares on its registry.
