Why this ASX artificial intelligence share rocketed 25% higher today

The BrainChip Holdings Ltd (ASX:BRN) share price rocketed 25% higher on Monday. Here's why investors were buying the artificial intelligence company's shares…

| More on:
a woman

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

One of the best performers on the ASX on Monday was the BrainChip Holdings Ltd (ASX: BRN) share price.

The artificial intelligence company's shares rocketed 25% higher to 6.9 cents at one stage before closing the day 14.5% higher.

Why did the BrainChip share price rocket higher?

Investors were buying the company's shares after it announced the receipt of an EAR99 classification for its Akida Neuromorphic System-on-Chip (NSoC), Akida Software Development Environment (ADE), and related technologies from the U.S. Government.

The Export Administration Regulations (EAR) classification of EAR99, which BrainChip has now formally received, removes the barriers for exporting Akida to non-U.S. countries and to non-restricted customers and use cases.

The EAR99 designation means the company does not require a pre-approval, or a license from the U.S. Department of Commerce, before delivering its solutions globally as part of sales and market expansion activities.

What is Akida?

By mimicking brain processing BrainChip has been able to pioneer a spiking neural network called Akida.

It is both scalable and flexible to address the requirements in edge devices. An edge device is best described as any piece of hardware that controls data flow at the boundary between two networks. This could be a router or a smartphone.

Akida has been designed to provide a complete ultra-low power AI Edge Network for vision, audio and smart transducer applications. The reduction in system latency provides faster response and a more power efficient system that can reduce the large carbon footprint data centres.

A "major achievement."

BrainChip's CEO, Louis DiNardo, believes this is a big positive for the company.

He said: "This is a major achievement for BrainChip and another distinction over our competition that have not achieved this classification. An EAR99 classification from the U.S. Government will further fuel our commercial momentum with target customers, particularly across Asia."

"Market interest in our unique AI technology continues to grow due to the exponential increase of AI uses at the edge. Combined with our strong differentiation in ultra-low power consumption and performance over other solutions, we are well positioned to address the requirements of a customers in high-growth markets internationally," he concluded.

Other small caps rising strongly on Monday include Compumedics Limited (ASX: CMP) and Money3 Corporation Limited (ASX: MNY). They rose 26% and 7%, respectively, following the release of positive updates. You can read more here and here.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Gainers

Man with rocket wings which have flames coming out of them.
Share Gainers

Guess which ASX All Ords stock just rocketed 34% on strong earnings growth

Investors just sent this ASX All Ords stock surging 34%. Here’s what’s happening.

Read more »

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
Share Gainers

Why Dimerix, Newmont, Regal Partners, and Titomic shares are storming higher

These shares are having a good finish to the week. Let's see why.

Read more »

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
Share Gainers

Why Fortescue, Lynas, PEXA, and Regis Healthcare shares are charging higher

These shares are having a strong session on Thursday. But why?

Read more »

A young man talks tech on his phone while looking at a laptop. A financial graph is superimposed across the image.
Share Gainers

Why Capricorn Metals, Insignia, Perseus Mining, and Qoria shares are storming higher

These shares are having a strong session on Tuesday. But why?

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Share Gainers

Why Amaero, AMP, Block, and South32 shares are racing higher today

These shares are starting the week on a positive note. But why?

Read more »

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

It was another momentous session for ASX shares this Friday.

Read more »

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Share Gainers

Why BHP, Catalyst Metals, Mesoblast, and Pilbara Minerals shares are shooting higher

These shares are ending the week with a bang. But why?

Read more »

Doctor doing a telemedicine using laptop at a medical clinic
Healthcare Shares

The Mesoblast share price just rocketed 38%! Here's why

ASX investors just sent the Mesoblast share price up 38%. But why?

Read more »