Why the BrainChip (ASX:BRN) share price is charging higher

The BrainChip Holdings Ltd (ASX:BRN) share price is charging higher on Tuesday after the release of an announcement…

| More on:

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 a positive performer on Tuesday morning.

At the time of writing, the artificial intelligence technology company's shares are up over 4% to 37 cents.

Why is the BrainChip share price charging higher today?

Investors have been buying the company's shares this morning after it provided an update on the evaluation boards for its Akida Neuromorphic System-on-Chip (NSoC).

According to the release, the company began shipping the evaluation boards in November.

Management notes that these boards complement its Akida Development Environment (ADE) for Early Access Partners (EAP) that have developed Akida compatible networks.

It explained that the ADE is a robust development environment that allows potential customers to design a neural network as a Convolutional Neural Network (CNN). They can then utilise the ADE workflow to convert the network to an event-based CNN or develop a native spiking neural network (SNN).

By implementing an event-based CNN, users can significantly reduce power consumption by processing only non-zero activations and take advantage of the sparsity in most data.

Management commentary.

BrainChip's CEO, Louis DiNardo, commented, "The Akida NSoC has proven to provide significant power savings and is the complete integration of a neural network design. Akida introduces new and powerful features to the high-growth AI Edge market."

"True AI Edge learning does not exist with current AI solutions and our ability to provide this and other features while significantly reducing both power consumption, size and the Bill-of-Materials (BOM) has attracted the attention of leading suppliers in the Smart Home, Smart Transportation and Smart City markets," he added.

The chief executive believes the company's technology can provide solutions in the healthcare sector.

Mr DiNardo explained: "We believe that these capabilities also will provide new solutions in Smart Healthcare applications that serve our mission of supporting Beneficial AI applications and improve the human condition globally in terms of diagnosis of infectious diseases, cancers and a wide array of challenging global health concerns."

"We are excited about our technology and the potential to impact many industries including healthcare and energy conservation which are clearly a global concern," he concluded.

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. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers

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

Why Catapult, De Grey Mining, Domino's, and Nufarm shares are charging higher

These shares are ending the week strongly. But why?

Read more »

A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face over these rising Tassal share price
Share Gainers

How these 3 ASX 200 stocks smashed the benchmark this week

Investors sent these ASX 200 stocks flying higher over the week. But why?

Read more »

asx share price boosted by us investment represented by hand waving US flag across winning athlete
Best Shares

Here are the best-performing ASX 200 shares since the US election result

We reveal the 10 ASX stocks that have had the highest share price gains since the US Presidential election.

Read more »

a man sits back from his laptop computer with both hands behind his head feeling happy to see the Brambles share price moving significantly higher today
Industrials Shares

Up 39% in a year, is there more growth to come for this ASX 200 share?

IML Equity Analyst Josh Freiman shares his views on a major ASX 200 industrial stock.

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Catapult, Flight Centre, Nufarm, and Xero shares are storming higher today

These shares are having a strong session on Thursday. But why? Let's find out.

Read more »

drug capsule opening up to reveal dollar signs signifying rising asx share price
Healthcare Shares

3 ASX healthcare shares going gangbusters on Thursday

Investors are sending these ASX healthcare stocks soaring today. 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

Here are the top 10 ASX 200 shares today

The ASX 200 made it three-for-three losses in a row this Wednesday.

Read more »

A young woman wearing overalls and a yellow t-shirt kicks one leg in the air showing excitement over the latest ASX 200 shares to hit 52-week highs
Share Gainers

Why Brickworks, James Hardie, Megaport, and OFX shares are charging higher today

These shares are having a good time on hump day. But why?

Read more »