Brainchip share price rockets 14% on patent news

Investors are happy with today's news. Let's see what patent has been granted.

| More on:
Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.

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 Brainchip Holdings Ltd (ASX: BRN) share price is rebounding strongly from last week's selloff.

In afternoon trade, the semiconductor company's shares are up 14% to 28 cents.

Why is the Brainchip share price rocketing?

Investors have been buying its beaten-down shares on Monday following the release of an announcement.

According to the release, Brainchip has been granted a new patent in Australia.

The company advised that patent AU2022287647 was granted on 04 May 2024 by IP Australia. It is considered by management to be a valuable intellectual property (IP) asset that facilitates low shot learning.

It highlights that the company's Akida IP and MetaTF tools seamlessly transform contemporary neural networks into event-based or spiking networks.

This patented technology synergises with the converted spiking networks, enabling the streamlined deployment of edge learning algorithms and unlocking use cases that conventional artificial intelligence (AI) tools or solutions cannot attain.

The claimed invention facilitates one/low shot learning. This means that already learned higher end features can be utilised when learning a new class with one or only a few samples of information in a supervised or semi-supervised way while retaining other neuron/classes.

The company explains that learning is performed by adding neurons to the final layer of a previously trained network to represent a new class, with the neural network weights of the added neuron being trained with only a few samples while the remainder of the network remains unchanged.

What could it be used for?

Management has highlighted a few areas in which it believes this technology could be used.

One is biometric face recognition. This would be by adding a new person's face as a new class without retraining the entire model.

It also believes it could be used in speech recognition. This would see it add new spoken words or commands to a pre-trained model without retraining the entire system.

A third use case could be anomaly detection in industrial systems. This would see it add a new class representing a site-specific anomaly without retraining the entire dataset.

Brainchip's under-fire CEO, Sean Hehir, appeared pleased with the news. He said:

This patent confirms our leadership in the field of one/low shot learning as an alternative to traditional machine learning processes, which are by contrast extremely inefficient, expensive and energy intensive. This patent illustrates why our neuromorphic technology is perfect for Edge AI applications where one/low shot learning, ultra-low power consumption and efficiency are key differentiators for customers seeking competitive advantages.

Following today's news, Brainchip's portfolio now comprises 20 issued patents. It also has 23 pending patent applications across various markets. Though, interestingly, this is down from 30 pending applications in December.

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.

More on Technology Shares

A corporate female wearing glasses looks intently at a virtual reality screen with shapes and lights representing Block shares going up today
Growth Shares

Forget Nvidia: This ASX growth stock is poised for its own bull run

I think this ASX growth stock could beat the phenomenal share price gains posted by Nvidia.

Read more »

flying asx share price represented by man flying remote control drone
Share Gainers

Up 246% in a year, here's why the Droneshield share price is racing higher again today

ASX investors are sending the Droneshield share price soaring today. But why?

Read more »

a group of people sit around a computer in an office environment.
Technology Shares

Is this ASX 200 tech stock in the buy zone following its results?

Is now a good time to snap up this top tech stock? Let's see what a leading broker is saying.

Read more »

A man sees some good news on his phone and gives a little cheer.
Technology Shares

Why are Brainchip shares racing higher after its AGM?

This struggling semiconductor stock is having a good session. But why?

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Earnings Results

ASX 200 tech stock lifts off on another record-setting half-year profit

Investors are bidding up the ASX 200 tech company following its half-year results.

Read more »

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
Technology Shares

Buy this ASX tech stock for a 26% return

Bell Potter is saying good things about this tech stock and sees it as a potential takeover target.

Read more »

Man smiling at a laptop because of a rising share price.
Technology Shares

Up 53% in a month, how Nuix shares are winning back investors

Is this ASX tech share back in the good books of investors?

Read more »

Sports fans looking at smart phone representing surging pointsbet share price
Share Gainers

Guess which ASX All Ords share just rocketed 25% on an earnings upgrade

Investors are bidding up the ASX All Ords share following an improved FY 2024 earnings outlook.

Read more »