Why is the BrainChip share price struggling on Friday?

What's dragging the BrainChip share price lower? Let's take a look.

| 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

Key points
  • The BrainChip share price is edging lower during early afternoon trade
  • The S&P/ASX All Technology Index is retracing on the back of heavy losses across the Nasdaq overnight
  • BrainChip is up more than 100% over the last 12 months

The BrainChip Holdings Ltd (ASX: BRN) share price is in the red despite no announcements from the company today.

At the time of writing, the artificial intelligence (AI) technology company's shares are down 1.16% to 86 cents.

For context, the S&P/ASX 200 Index (ASX: XJO) is also heading south, down 0.68% to 6,510.1 points.

Let's take a look below to find out what's dragging down BrainChip shares on Friday.

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.

Image source: Getty Images

What's happening with BrainChip?

Investors are selling off the BrainChip share price following a steep dive across the S&P/ASX All Technology Index (ASX: XTX) today.

Currently, the Aussie tech sector is the worst performer across the ASX Indices, retracing by 2.34% to 1,957.8 points.

This comes after Wall Street recorded heavy losses overnight, with the tech-heavy Nasdaq also tumbling 2.86%.

The market sell-off restarted as investors weighed up the US Fed Reserve raising interest rates again to combat inflation.

In addition, Apple (NASDAQ: AAPL) shares, which make up a considerable portion of the Nasdaq, fell 4.9% on reports that demand for its iPhone is weakening.

Nonetheless, this has impacted the majority of tech stocks on the ASX.

It is worth noting that September has historically been a terrible month for share market returns. Dubbed by investors the 'September effect', it's widely regarding the worst time to hold stocks in the year.

BrainChip share price snapshot

Despite tumbling 6% in the last week, the BrainChip share price is up 115% over the last 12 months.

Year-to-date, it has also fared well despite the recent volatility on the ASX, up 25%.

Based on today's price, BrainChip commands a market capitalisation of around $1.49 billion.

Motley Fool contributor Aaron Teboneras 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 Technology Shares

a man wearing spectacles has a satisfied look on his face as he appears within a graphic image of graphs, computer code and technology related symbols while he concentrates on a computer screen
Technology Shares

Are these the smartest ASX tech stocks to buy now with $2,000?

When high-quality tech stocks fall sharply, it can create opportunity.

Read more »

Green arrow going up on stock market chart, symbolising a rising share price.
Technology Shares

2 ASX tech shares that could double from here

Despite sharp recent falls, brokers continue to back these growth stocks.

Read more »

A young man talks tech on his phone while looking at a laptop with a financial graph superimposed across the image.
Technology Shares

Xero shares rise again. Is this the start of a turnaround?

Xero shares rise but remain down 30% in 2026.

Read more »

A man sits with his head in his hand, looking quite dejected, as he holds a rubber tipped pen on the screen of a computer showing a graph trending downwards.
Technology Shares

Has the WiseTech stock finally hit rock bottom?

WiseTech shares slide 34% this year as selling pressure begins easing.

Read more »

A female soldier flies a drone using hand-held controls.
Technology Shares

Electro Optic Systems just had its DroneShield moment. Here's what investors should know

Stocks like EOS and DroneShield can deliver exceptional returns, but those returns come with volatility.

Read more »

A doctor appears shocked as he looks through binoculars on a blue background.
Technology Shares

Up over 900%: Is it too late to buy this incredible ASX tech stock?

The ASX stock has come off the boil in 2026 as investors pull back.

Read more »

An army soldier in combat uniform takes a phone call in the field.
Technology Shares

EOS shares rebound after yesterday's 16% plunge as insiders move to cash out

EOS shares have been on a remarkable run, rising roughly 7x over the past year.

Read more »

A young woman holding her phone smiles broadly and looks excited, after receiving good news.
Technology Shares

The bulls are coming: 2 of the best ASX 200 shares to buy now to get ahead

Here are two ASX 200 shares that I think could bounce back strongly.

Read more »