Why did the BrainChip share price just hit a 3-year low?

BrainChip shares are now back to 2020 levels.

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It's been a very pleasant day indeed for the ASX share market and the All Ordinaries Index (ASX: XAO). At present, the All Ords is up a happy 0.62%. But the same cannot be said for the BrainChip Holdings Ltd (ASX: BRN) share price. 

Brainchip shares are having yet another clanger of a day today. The artificial intelligence (AI) share closed at 32 cents yesterday. But today, the company has shed another hefty 3.12% and is down to just 31 cents each.

Not only is that a new 52-week low for the Branchip share price, but it is also the lowest this company has traded at in three years. Yep, you'd have to go back to August 2020 to find the last time Branchip was asking 31 cents a share:

So what on earth is behind this latest low for Brainchip?

Why is the BrainChip share price at a three-year low today?

Well, this company has been facing some issues for a while now. As we discussed earlier this month, the company is still bleeding cash. Over the three months to 30 June, Brainhip saw $4.1 million in cash outflows. To be fair, that was an improvement over the $6.3 million that went out the door over the prior quarter.

But today's latest Brainchip share price slump doesn't seem to have anything to do with the company itself. There haven't been any significant announcements out of Brainchip for a while now – in fact, since that cash flow report was released back in late July.

So it's likely that the Brainchip share price is reacting to the general sell off we are seeing amongst ASX tech shares this Wednesday.

Tech stocks are having a pretty awful day across the board, illustrated by the S&P/ASX 200 Information Technology Index (ASX: XIJ)'s horrid 5.14% drop so far today.

These losses are being led by the WiseTech Global Ltd (ASX: WTC) share price. Wisetech shares are cratering today, currently down by 20.2%. It seems investors aren't impressed at all with the company's latest earnings.  

So it looks like this pessimism in the tech space might be responsible for the Brainchip share price's new three-year low today.

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 WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. 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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