Brainchip share price up 1000% in 5 months. Is it the next big thing?

After rising 1000% in just 5 months, is the Brainchip share price the next big ASX tech share to take the investing world by storm?

| More on:
cartoon brain standing on winner's block representing rising Brainchip share price

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 has been rising to new multi-year highs thanks to the development of its ground-breaking Akida Neuromorphic System-on-Chip. At the time of writing, the Brainchip share price has jumped nearly 18% today alone to 33 cents.

As the ASX tech share announced new partnerships and arrangements to cement its position as a leading artificial intelligence (AI) specialist, investor attention has been growing at a rapid rate.

What's been happening with the Brainchip share price?

It's hard to believe the Brainchip share price has once again risen like a phoenix from the ashes.

Founded in 2011, the United States-based tech company hit an all-time low of 1.1 cent in January 2015. With a vision to mimic the human brain through a microchip, this prompted former Australian mining company, Aziana Limited, to acquire the tech company at a discounted rate.

In the months following the deal, the Brainchip share price reached a record high of 46 cents in November 2015.

However once again, the company's shares plummeted in value due to the uncertain economic environment caused by COVID-19. Brainchip shares were trading at 3 cents in March 2020.

For the brave investor who bought the company's shares during the bear market and held onto them until today, a gain of 1000% would be showing on the right side of their holdings. Impressive returns for just five months of patience.

What has fuelled Brainchip's share price rise?

Defying challenging market conditions, the world's only pure-play AI company has been making tailwinds.

Last week, Brainchip announced its partnership with Magik Eye Inc. to combine its AI processing unit with revolutionary 3D depth sensing technology. The collaboration further strengthens the capabilities of Brainchip's promising Akida neuromorphic processor and opens up new market opportunities for revenue.

The week before, Brainchip entered a put option agreement with LDA Capital Limited, a US-based investment group. The agreement provides a financing facility of up to $29 million over the next 12 months. The drawdown will strengthen Brainchip's balance sheet and support the commercialisation of its pioneering Akida technology.

In its most recent quarterly update to the market, the company advised it had completed the wafer fabrication, assembly and test operations of the Akida device. The early access program and proof-of-concept engagements are expected to commence this month.

The company is expected to release its 1H20 results some time this week.

Is Brainchip a bargain buy?

Investing in small-cap shares that mature to become a dominant force with large recurring revenues can be life changing for an early investor.

Indeed, it is considered a risky play which is why I would never recommend more than 5% of your portfolio in 1-2 companies with a market capitalisation of less than $500 million.

Having said that, I believe today's Brainchip share price has huge potential to materially grow in the future. Cutting-edge technology mixed with insatiable demand is an investor's dream.

I would certainly be a buyer of the Brainchip share price today with a view to holding for the long term.

Remember, successful investing requires immense discipline and patience.

Should you invest $1,000 in Ardent Leisure Group right now?

Before you buy Ardent Leisure Group shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Ardent Leisure Group wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Aaron Teboneras 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 Market News

Excited couple celebrating success while looking at smartphone.
Broker Notes

Bell Potter names the best ASX 200 stocks to buy in May

The broker is feeling bullish on these names this month. Let's find out why.

Read more »

Red buy button on an apple keyboard with a finger on it representing asx tech shares to buy today
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

A man casually dressed looks to the side in a pensive, thoughtful manner with one hand under his chin, holding a mobile phone in his hand while thinking about something.
Opinions

Investing in high-yield ASX stocks has two major negatives

High-yield stocks do have downsides.

Read more »

Person pretends to types on laptop drawn in sand.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a happy finish to the week for ASX shares this Friday.

Read more »

Three people in a corporate office pour over a tablet, ready to invest.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A mature age woman with a groovy short haircut and glasses, sits at her computer, pen in hand thinking about information she is seeing on the screen.
Share Market News

ASX shares in April: 8 key takeaways according to Macquarie

Here are eight key takeaways from April, according to a new note from the broker.

Read more »

Woman looking at a phone with stock market bars in the background.
Share Market News

Market outlook: Should I 'sell in May and go away'?

May is the time to sell... If you believe in fairytales.

Read more »

Five young people sit in a row having fun and interacting with their mobile phones.
Share Gainers

5 ASX All Ords stocks rocketing higher this week

Investors sent these five ASX All Ords stocks soaring this week. But why?

Read more »