Why is the BrainChip (ASX:BRN) share price leaping 7% on the first trading day of the year?

exploding asx share price represented by cloud coming out of man's brain

The BrainChip Holdings Ltd (ASX: BRN) share price is off to a flying start for 2022 following a company update.

At the time of writing, the artificial intelligence (AI) technology company’s shares are up 7.35% to 73 cents.

What did BrainChip announce?

In the morning, BrainChip provided investors with a board appointment which has led its shares to push higher.

According to its release, BrainChip advised that it has announced the inclusion of highly experienced director, Pia Turcinov to its board.

Serving as a non-executive director effective today, Ms Turcinov brings a wealth of experience to the role. Her knowledge spans across several industries for the last 30 years with a particular focus on innovation, technology, and diversification.

Furthermore, Ms Turcinov holds a number of qualifications in law and business management. She regularly mentors and publicly speaks on topics relating to entrepreneurship, technological disruption and Science, Technology, Engineering and Mathematics (STEM).

Incoming non-executive director, Ms Turcinov commented:

I’m excited to be joining the BrainChip Board as they launch a best-in-class neuromorphic AI chip that I believe can change the world. I look forward to bringing my unique qualifications and diverse experience to assist BrainChip through this new period of growth, helping the company build worldwide strategic AI partnerships.

BrainChip CEO, Sean Hehir added:

…She joins us at an exciting time and her extensive knowledge and experience in strategically leveraging entrepreneurship, innovation, commercialisation, economic and supply chain development will be greatly valued.

In separate news, Mercedes Benz has also partnered with BrainChip to use its Akida technology in the EQXX Concept car.

While still in the infancy stage, neuromorphic computing is currently being developed to efficiently power the vehicle.

Mercedes Benz noted that once integrated, energy consumption will be significantly reduced to run its latest intelligence technologies.

BrainChip share price snapshot

Over the last 12 months, BrainChip shares have gained 60%. The company’s share price reached a 52-week high of 77 cents per share in March 2021, before moving in circles.

On valuation grounds, BrainChip has a market capitalisation of around $1.15 billion, with almost 1.7 billion shares on its registry.

The post Why is the BrainChip (ASX:BRN) share price leaping 7% on the first trading day of the year? appeared first on The Motley Fool Australia.

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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 Bruce Jackson.

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