It's been a fairly mild day for the All Ordinaries Index (ASX: XAO) and most ASX All Ords shares this Tuesday. At present, the All Ords has gained a tentative 0.093%, leaving it at just under 7,870 points. But 'mild' and 'tentative' are two words that no one would be using to describe the Brainchip Holdings Ltd (ASX: BRN) share price this session.
Brainchip shares are on fire today. The ASX artificial intelligence (AI) share closed at 26 cents a share yesterday afternoon. But this morning, the company opened at 28 cents a share before rocketing as high as 33 cents just after lunchtime today. That's a gain worth almost 27%.
Since reaching that intra-day high, Branchip shares have cooled off a little. But the company is still asking 31 cents at present, up a still-impressive 19.23%.
So what on earth is going on here?
Why has the BrainChip share price rocketed 27% today?
Well, unfortunately, there's not much to go on here. So the correct answer is: 'who the heck knows'.
To elaborate, there hasn't been any fresh news or announcements out of Brainchip for a while now. Since late January to be exact.
Brainchip's last major announcement was the quarterly activities report, which was released on 25 January.
As we covered at the time, this report revealed that Brainchip's cash balance had declined from US$17.8 million over the three months to 31 December to US$14.3 million. However, Brainchip also reported that it was able to achieve a positive cash inflow from customers over the period.
At the time, this report didn't result in too much movement in the Brainchip share price.
However, as soon as February arrived, the company's shares jumped on a rocket ship. At the end of January, Brainchip was trading for 16 cents a share. But by 6 February, those same shares had vaulted up 25% to 20 cents.
A month to remember
Between last Thursday (8 February) and yesterday's close, the company had added an additional 30%. Added to today's gains, Brainchip has now enjoyed a 50% surge since Thursday, and an 87.5% rise since the start of the month. Check that all out for yourself below:
But there's no obvious reason at all why this stock has surged so much since the start of the month. Brainchip shares do seem vulnerable to more severe bouts of share price volatility than your ordinary ASX share though, as we covered last year.
Perhaps this is just a game that investors are playing with each other. Or perhaps someone is buying up shares en masse. Whatever, the reason, it's certainly been a good month for this ASX AI share.
Saying that, the Brainchip share price does remain down by almost 50% since February 2023, and by roughly 82% since its 2021 record high.
