It has been a difficult year for Brainchip Holdings Ltd (ASX: BRN) shares.
In morning trade, the semiconductor company's shares are up 1% to 66.2 cents. However, despite this, the Brainchip share price is still down 16% since the start of the year.
But as you can see below, this is only telling half the story. At one stage, the company's shares were up as high as $2.34.
From that level, its shares have lost a whopping 72% of their value.
Image source: Getty Images
Will 2023 be better for the Brainchip share price?
Whether 2023 will be better for the Brainchip share price will almost certainly depend on its revenue generation.
With a market capitalisation of $1.1 billion, Brainchip appears to be priced for success. And with short sellers building positions, there could be an almighty crash if the company doesn't start justifying its valuation in the coming quarters with some significant revenue.
Especially after management hyped up its sales potential in its most recent quarterly update. Brainchip's CEO, Sean Hehir, said:
We are seeing the greatest amount of sales activity and engagement in the Company's history.
Will Brainchip deliver?
It is worth remembering that there's certainly no guarantee of success in an extremely competitive industry dominated by behemoths such as AMD, Intel, Nvidia, and Qualcomm.
In addition, Brainchip has a terrible record of delivering on its lofty goals. Since being acquired by a mining company called Aziana back in early 2015, the company has announced countless agreements that have gone nowhere.
Time will tell if history repeats itself and shareholders get burned in 2023.
Perhaps the only thing that you could guarantee in 2023 is management being issued millions more Brainchip shares with extremely low hurdles.
