Why is the BrainChip share price gaining 5% on Friday?

Why are BrainChip shares on fire this Friday?

| More on:
Person pointing finger on on an increasing graph which represents a rising share price.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The S&P/ASX 200 Index (ASX: XJO) is giving investors a rather pleasant end to the trading week so far this Friday. At the time of writing, the ASX 200 is up a decent 0.36% at around 6,550 points. But it’s been a far more pleasing day for one of the ASX 200’s newest members – the BrainChip Holdings Ltd (ASX: BRN) share price.

BrainChip shares are finishing their first week on the ASX 200 today after the artificial intelligence company officially joined the index on Monday. And what an end to the week it has been so far. BrainChip shares are presently up a pleasing 4.6% at 91 cents a share.

So why are BrainChip shares rising so enthusiastically today?

Why is the BrainChip share price rocketing almost 5% today?

Well, it’s worth noting that this move comes after a tough few days for the company, share price wise. Although BrainChip is booming today, the company was heavily sold off for most of the week. It reached 88 cents a share yesterday after falling more than 5% since Monday. Even after today’s rebound, BrainChip remains down by more than 21% over the past month alone.

So perhaps investors have just decided that this company got too cheap to ignore yesterday, and are flocking back today. But we also see similar moves across the ASX tech share space today, which could also explain Brainchip’s rise.

As we discussed earlier, ASX tech shares of many stripes are booming today. Take Block Inc (ASX: SQ2). This company’s shares are up more than 10% today. Or Life360 Inc (ASX: 360), up almost 18%. Xero Limited (ASX: XRO) is up almost 5%, while WiseTech Global Ltd (ASX: WTC) has zoomed 6% higher.

So it’s also possible that BrainChip shares have just been caught in this ASX tech share updraft that we are seeing.

Whatever the reason, it sure has been a good day for BrainChip shareholders so far.

At the current BrainChip share price, this ASX tech share has a market capitalisation of $1.56 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 Block, Inc., Life360, Inc., WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended Block, Inc., 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.

More on Technology Shares

An analyst wearing a dark blue shirt and glasses sits at his computer with his chin resting on his hands as he looks at the CBA share price movement today
Technology Shares

Here’s what Goldman Sachs thinks of the Xero share price

What's being said about Xero's shares this week?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Earnings Results

Nuix share price tumbles following $23m loss in FY22

Nuix shares dropped into the red on Thursday...

Read more »

Young man in shirt and tie staring at his laptop screen watching the Paladin Energy share price tank today
Earnings Results

Codan share price sinks 10% despite record profit

How did Codan track for the 2022 financial year?

Read more »

A gold bear and bull face off on a share market chart
Technology Shares

Does the bull beat the bear for this ASX tech share?

Let's take a look at the bull and bear cases for this ASX tech share.

Read more »

A boy is about to rocket from a copper-coloured field of hay into the sky.
Technology Shares

Guess which ASX tech share is soaring 16% on a new Google deal

This tech share has had a great past 12 months.

Read more »

Man ponders a receipt as he looks at his laptop.
Technology Shares

Xero share price dips 5% on weaker UK performance

The ASX market darling is feeling the heat after providing an update at its AGM.

Read more »

a man sits in casual clothes in front of a computer amid graphic images of data superimposed on the image, as though he is engaged in IT or hacking activities.
Earnings Results

Data#3 share price dips despite 19% leap in FY22 dividend

The ASX tech share said ongoing supply chain issues had impacted its performance over the year.

Read more »

A hipster looking man with bushy beard and multiple arm tattoos sits on the floor against a sofa reading a tablet with his hand on his chin as though he is deep in thought.
Industrials Shares

Why did the Novonix share price nosedive 6% today?

We check what happened to shares in the battery material technology company on Wednesday.

Read more »