BrainChip Share Price Up as Production of Its Neuromorphic (ASX:BRN)

It’s been just under a month since BrainChip Holdings Ltd [ASX:BRN] announced the shock departure of its CEO. A topic that you can read more about here, if you need a refresher.

Because despite the surprising nature of this exit, it did wonders for the stock’s share price. Prompting questions as to whether or not the former CEO may have been holding back the company.

We’ll never truly know, but we can certainly say that things are on the up again for BrainChip.

With the BRN share price flying 22.64% higher today, at time of writing. Surging on the back of news that production of the company’s novel neuromorphic chip — Akida — is rapidly increasing.

Let’s delve into the details…

Mass production, mass disruption

In case you’re unfamiliar with BrainChip, they’re a leading artificial intelligence (AI) business. Developing computer chips that can process information in a similar way to a human brain.

Because of this, they are far more powerful than your typical processor, offering new solutions to the ever-demanding needs of data-driven industries and sectors.

However, as with a lot of new technology, getting it into the hands of people is the first real challenge.

For BrainChip, this has been no exception. With the need to design and develop a feasible production version of its Akida chips. An endeavor that may sound rudimentary but is vitally important to get right.

Fortunately, it seems as though BrainChip has nailed it.

Announcing today that the engineering layout of its AKD1000 chips has been sent to TSMC. The Taiwanese-based chip manufacturer who will be in charge of mass producing Akida.

A major milestone that brings the company one step closer to its commercial goals.

As new CEO, Peter van der Made comments:

I am grateful to our engineering team, who worked hard over the past eight months to release the Akida technology for volume production, and to our EAP customers that have helped lead us to market readiness,

This move to manufacturing is a major milestone for BrainChip and for the industry at large as the first realistic opportunity to bring AI processing capability to edge devices for learning, enabling personalization of products without the need for retraining.

So with the first units set to be available around August, BrainChip is well and truly in the final stretch. A long road that will finally show the world whether Akida is the revolution they say it is, or simply an overhyped flop.

A result that investors will be nervously waiting to see for themselves.

What’s next for the BrainChip Share Price?

Looking ahead, it’s clear that the market has high hopes still for BrainChip. With at least some expectation that Akida will be in demand.

The only question is just how much of that demand will translate into meaningful sales. Because all the production in the world doesn’t mean anything unless the product is actually desirable.

Again, that is what investors will need to consider when holding this stock.

Broadly speaking though, for the ASX as a whole, this is a big milestone. Because noteworthy tech stocks, especially those with valuations as big as BrainChip’s, are few and far between in Australia.

And in this sense, they have already done so much to make AI a respected sector in the local market. So whether they succeed or fail, at the very least, they are a pioneer. A company that will inspire and inform a wide range of AI stocks for years, and maybe even decades, to come.

We know this because we’re already seeing it. With a handful of tiny, and relatively unknown AI stocks littered across the small-cap space. Companies that have just as much potential to deliver astronomical returns, like BrainChip has.

To learn more about this burgeoning AI industry, and five incredible stocks to consider right now, check out full report. You can get your very own, free copy, right here.


Ryan Clarkson-Ledward,
For Money Morning

Ryan Clarkson-Ledward is an Editor at Money Morning.

Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects.

Ryan is also the Editor of Australian Small-Cap Investigator, a stock tipping newsletter that hunts down promising small-cap stocks by dissecting the latest events affecting the world.

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