Why is the BrainChip share price racing 8% higher today?

BrainChip shares are avoiding the market selloff…

| More on:
A male ASX investor sits cross-legged with a laptop computer in his lap with a slightly crazed, happy, excited look on his face while next to him a graphic of a rocket shoots upwards with graphics of stars scattered around it

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

Key points

  • BrainChip shares are avoiding the market selloff
  • This appears to have been driven by excited surrounding an unannounced partnership with Arm
  • Arm is one of the world's leading semiconductor companies

The market may be a sea of red again on Monday but that hasn't stopped the BrainChip Holdings Ltd (ASX: BRN) share price from racing higher.

In afternoon trade, the artificial intelligence technology company's shares are up 8% to $1.15.

Why is the BrainChip share price racing higher?

The BrainChip share price is rising today despite there being no announcements or media releases out of the company.

However, something that appears to have caught the eye of investors is the inclusion of Arm among its list of partners.

BrainChip comments on the unannounced partnership, saying:

BrainChip is partnering with Arm, the leading technology provider of processor IP [intellectual property], to provide the most advanced solutions to make sensor products faster, smarter, and safer.

What is Arm?

In case you're not familiar with Arm, it is a UK-based semiconductor company that designs the components of processors for others to ultimately build.

The company then owns these designs, along with the architecture of their instruction sets, and licenses the IP to other companies, allowing them to build systems that incorporate their own designs as well as Arm's.

Earlier this year, tech giant Nvidia attempted to acquire Arm for US$40 billion before the deal ultimately collapsed due to regulatory issues.

At the time, Nvidia's founder and chief executive Jensen Huang commented: "Arm is at the centre of the important dynamics in computing. I expect Arm to be the most important [computer processing unit] architecture of the next decade."

In light of this, Arm certainly is a company that you would want to partner with if you were operating in BrainChip's industry. So it isn't overly surprising to see some investors getting excited and bidding the BrainChip share price higher.

What now?

The company could potentially be hit with a price query by the ASX following the rise in the BrainChip share price today. At which point, it may provide further details on the partnership.

Conversely, the deal may be so immaterial to the company's revenues that management doesn't feel it worthy of mentioning. You just never know with BrainChip.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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 Scott Phillips.

More on Share Market News

A smiling woman at a hardware shop selects paint colours from a wall display.
Broker Notes

After its strategy day, what does Macquarie think Wesfarmers shares are worth?

Let's see what the broker is saying about this blue chip.

Read more »

Buy, hold, and sell ratings written on signs on a wooden pole.
Technology Shares

After surging 13% yesterday, are TechnologyOne shares a buy, hold or sell according to Macquarie?

Valuations matter when investing, and Macquarie feels no different.

Read more »

A woman presenting company news to investors looks back at the camera and smiles.
Broker Notes

Broker reveals which ASX stocks are rate-cut winners

Macquarie is tipping three further interest rate cuts in July, August, and November.

Read more »

Ecstatic woman looking at her phone outside with her fist pumped.
Broker Notes

Where to invest $1,000 into ASX 200 shares in June

Goldman Sachs is tipping these shares as buys. Let's find out why.

Read more »

A happy male investor turns around on his chair to look at a friend while a laptop runs on his desk showing share price movements
Share Market News

5 things to watch on the ASX 200 on Friday

A better session is expected for Aussie investors today.

Read more »

A man looking at his laptop and thinking.
Share Gainers

Here are the top 10 ASX 200 shares today

The markets lost their steam this Thursday.

Read more »

A young man pointing up looking amazed, indicating a surging share price movement for an ASX company
Broker Notes

3 amazing ASX 200 shares to buy and hold forever

Brokers think these shares are in the buy zone. Let's see why they could be top buy and hold picks.

Read more »

iPhone with the logo and the word Google spelt multiple times in the background.
Opinions

I've been buying these 2 US stocks in 2025. Here's why

Sometimes the US markets are a better place to go shopping for stocks.

Read more »