The Brainchip Holdings Ltd (ASX: BRN) share price roared higher in 2024.
But it certainly wasn't a smooth ride up.
Shares in the S&P/ASX 300 Index (ASX: XKO) semiconductor company closed out 2023 trading for 17 cents. On 31 December 2024, those same shares were changing hands for 39 cents apiece, up a blistering 129.4%.
For some context, the ASX 300 gained 7.5% over the year.
As for the rollercoaster ride in our headline, have a look at the chart below.
Buy-and-hold investors will have done quite well over the 12 months.
But with the Brainchip share price hitting 49 cents in late February before plunging to 16 cents in September, they may have been reaching in the medicine cabinet for some stomach-calming Dramamine.
Here's what went right and wrong for the ASX 300 tech stock over the year just past.
Image source: Getty Images
Headwinds and tailwinds for the Brainchip share price
Try as we might, there are few concrete reasons to explain the meteoric rise of the Brainchip share price in February.
Between the closing bell on 31 January and market close on 23 February, shares rocketed an eye-popping 206.3%.
The most plausible explanation is that Brainchip's Akida 1.0 technology caught the wave of investor enthusiasm over the sky-high potential of artificial intelligence (AI). An exuberance driven by global chipmaker Nvidia Corp (NASDAQ: NVDA).
Brainchip's Akida neuromorphic processor is inspired by the brain's neural architecture. The company's technology is expected to be used in upcoming European space missions,
But the Brainchip share price went into a sharp decline following the company's financial updates, which showed that cash outflows were rising even as cash inflows shrank.
For the six months to 30 June, the company reported an 8% year-on-year reduction in revenue from continuing operations to US$106,693. Or around what you might expect one of the company's executives to get paid over a half year.
On the moderately positive side, net losses decreased by 33% to US$11.52 million. Though with the company holding only US$10.9 million in cash and equivalents at 30 June, that improvement did little to soothe investor concerns.
A strong end to the year
If you have another look at the chart up top, you'll see the Brainchip share price raced higher again in December.
Shares closed up 11.4% on 10 December after the company announced that it had been awarded a US$1.8 million contract from Air Force Research Laboratory (AFRL) on neuromorphic radar signalling processing.
The ASX 300 tech stock had another strong day on 16 December after reporting that Frontgrade Gaisler – a Swedish provider of radiation-hardened microprocessors for space applications – had licensed its Akida 1.0 technology.
"This collaboration with Frontgrade Gaisler to licence Akida IP for implementation into space SoCs represents an important step in space-based AI deployments, turning into reality what once was considered unattainable," Brainchip CEO Sean Hehir said on the day.
So far in 2025, the Brainchip share price is down 13.6% at $33.8 cents apiece.
