The BrainChip Holdings Ltd (ASX: BRN) share price is falling today despite the S&P/ASX 200 Index (ASX: XJO) travelling higher.
At the time of writing, the artificial intelligence (AI) technology company's shares are down 4.07% to $1.06 apiece.
In comparison, the benchmark index is up 0.49% to 7,099 points following a positive session on Wall Street overnight.
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What's driving BrainChip shares lower?
Despite no announcements from the company, investors are selling off the BrainChip share price.
It appears a weakness across the S&P/ASX All Technology Index (ASX: XTX) is hurting shares in the AI on-chip processing and learning company.
After seesawing since this time last week, the tech sector is powering down by 0.95% on Tuesday.
In addition, there could be some profit taking by investors following the recent rise of BrainChip shares.
After surging to a six-month high of $1.365 on 28 July, the gradual decline seems to be coming off the back of a broader market consensus.
BrainChip shares, for most of the year, normally range around the $1 mark.
When there are buyers pushing up or down a share price, it is usually noise coming from the microenvironment.
It may be linked to the political tensions between the US and China over the Taiwan issue.
If the situation heats up, this could have massive ramifications for the world's most important chip developer Taiwan Semiconductor Manufacturing Co. (TSM).
The company makes more than 90% of advanced chips produced globally.
BrainChip share price snapshot
Despite tumbling 6% this week, the BrainChip share price is up 116% over the last 12 months.
Year-to-date, it's also fared well — up 56% — despite the recent volatility on the ASX.
The company's share price reached an all-time high of $2.34 in January 2022, before sharply pulling back.
On valuation grounds, BrainChip commands a market capitalisation of around $1.83 billion.
