The BrainChip Holdings Ltd (ASX: BRN) share price ended the day lower on Wednesday.
The semiconductor company's shares fell over 1.5% to 85.5 cents.
This means that the BrainChip share price is now down 9% since this time last week.
Why is the BrainChip share price down 9% in a week?
The BrainChip share price has tumbled in recent sessions despite there being no news out of the company.
However, it is worth highlighting that over the last six months, short sellers have been building large positions in the loss-making company.
BrainChip's short interest was as low as 1.1% in March, whereas this month it was as high as 6.9%. This could have put pressure on the sell side of the equation.
While no short sellers have explained why they are targeting the company, its market capitalisation of $1.5 billion on next to no revenue could be a reason.
In addition, BrainChip is the only ASX 200 share that I'm aware of that doesn't have any broker coverage. This could be interpreted as a sign that the smart money doesn't believe BrainChip's shares are investment grade.
As a result, the company may need to start generating some meaningful revenue in the near future to force a change of sentiment.
Time will tell if it does.
