The BrainChip Holdings Ltd (ASX: BRN) share price is falling despite the ASX 200 remaining relatively flat so far today.
At the time of writing, shares in the artificial intelligence (AI) technology company are down 4.32% to 88.5 cents apiece.
In comparison, the S&P/ASX 200 Index (ASX: XJO) is 0.08% lower to 6,733.4 points.
Let's take a look at what could be causing this discrepancy between BrainChip shares and the benchmark index.
Image source: Getty Images
BrainChip shares backtrack as tech sector plummets
The BrainChip share price appears to be suffering at the hands of a broader fall across the S&P/ASX All Technology Index (ASX: XTX).
The sector is currently in the red by 1.28%, making it one of the worst performers across the ASX Indices.
This follows the drop of the tech-heavy Nasdaq on US markets which last week extended its slide to the lowest levels in two months.
A worse-than-expected inflation report which showed US CPI rose 8.3% year on year in August has caused panic among investors. This is because it's likely the US Federal Reserve will hike interest rates up to 100 basis points this week.
Currently, the Nasdaq Futures is down 0.41% ahead of the all-important 21 September (early 22 September, Australian time) central bank meeting.
With BrainChip shares now down 6% in a week, the company's share price appears to be holding at the support level of around 88 cents.
If this breaks, the next support is around the 80-cent mark, indicating a potential 10% drop if the market goes haywire.
BrainChip share price summary
Throughout 2022, the BrainChip share price has moved in circles due to volatility on the ASX.
Nonetheless, the company's shares are up 30% for the period, and 89% higher when looking at the past 12 months.
Based on today's price, BrainChip commands a market capitalisation of roughly $1.5 billion.
