BrainChip share price jumps 10% on Akida platform news

This tech stock is having a strong start to the week thanks to the launch of its new platform…

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Key points
  • BrainChip shares are storming higher on Monday
  • The struggling semiconductor company has announced the launch of its new platform
  • The new platform has been designed based on customer feedback

The BrainChip Holdings Ltd (ASX: BRN) share price is having a strong start to the week.

In morning trade, the struggling semiconductor company's shares are up 10% to 56 cents.

A man raises his reading glasses in a look of surprise.

Image source: Getty Images

Why is the Brainchip share price jumping?

Investors have been bidding the BrainChip share price higher on Monday after the company released an announcement.

According to the release, BrainChip has launched the second generation of its Akida platform that drives edge devices for the Artificial Intelligence of Things (AIoT) solutions and services market.

The release notes that the new platform adds efficient eight-bit processing to go with advanced capabilities such as time domain convolutions and vision transformer acceleration. It claims that this provides an unprecedented level of performance in sub-watt devices, taking them from perception towards cognition.

BrainChip's CEO, Sean Hehir, advised that the new platform was influenced by customer feedback. He said:

Our customers wanted us to enable expanded predictive intelligence, target tracking, object detection, scene segmentation, and advanced vision capabilities. This new generation of Akida allows designers and developers to do things that were not possible before on an Edge device. By inferring and learning from raw sensor data, we take a substantial step toward a cloudless Edge AI experience. With this launch, we have significantly extended our competitive advantage in neuromorphic AI.

Hehir also appears hopeful that this will lead to "revenue growth" over the coming years. Which certainly is needed after the company recorded a pitiful US$250k of revenue during the second half of 2022. He added:

The development of the second generation of Akida was strongly influenced by our customers' feedback and driven by our extensive market engagement. We have recently expanded our sales organisation to become truly global and we are focused on executing more IP licence agreements and generating revenue growth over coming years.

Time will tell if this is a turning point for the meme stock. But if the sales don't start rolling in after this, perhaps they never will.

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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