Why is the Brainchip (ASX:BRN) share price jumping today?

The Brainchip share price is rebounding today from its massive slump yesterday, where it lost nearly 10%.

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The Brainchip Holdings Ltd (ASX: BRN) share price is rebounding today from its massive slump yesterday, where it lost nearly 10%.

The Brainchip share price is up 5.6% to 60.5 cents per share at the time of writing.

Brainchip is focused on the development of software and hardware-accelerated solutions for advanced artificial intelligence (AI) and machine learning applications.

Brainchip's advanced artificial intelligence

These advanced artificial intelligence solutions are called neuromorphic computing. Neuromorphic computing is a branch of artificial intelligence (AI) that simulates the functionality of the human neuron. Essentially, Brainchip is trying to replicate the way the human brain learns and relates information in a computer chip.

The company has developed a revolutionary spiking neural network (SNN) technology, a type of neuromorphic computing that learns autonomously, evolves and associates information just like the human brain.

Brainchip's primary product is its Akida Neuromorphic Processor Unit, which is a hardware product.

Brainchip's Neuromorphic Processor starts production

The company released huge investor news two days ago when it confirmed that it has begun volume manufacturing of its aforementioned Akida AKD1000 neuromorphic processor chip for edge AI devices.

'Edge' in AI means that the AI program runs on the device itself and not on a cloud-based server.

BrainChip CEO Peter van der Made welcomed the news.

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.

Brainchip share price snapshot

Brainchip investors also liked the news and sent its share price rocketing 19% that day, before a few appeared to immediately sell their interests the next day, culminating in a 9% drop.

Overall, the Brainchip share price has gained 9% this week, 6% the past month, 37% in 2021 so far and 1,307% over the past 12 months.

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Motley Fool contributor Lucas Radbourne-Pugh 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.

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