ASX shares are having yet another doozy of a selling day thus far this Tuesday. As it currently stands, the All Ordinaries Index (ASX: XAO) has lost another painful 1.36% and is now back to just under 7,260 points. But that pales in comparison to what is happening with the BrainChip Holdings Ltd (ASX: BRN) share price.
BrainChip shares are getting hammered today, no way around it. At the time of writing, this artificial intelligence company is down a nasty 11.16% at $1.075 a share. It could be worse though. Soon after market open, BrainChip shares plunged all the way down to $1 a share. That was a loss worth more than 17% at the time.
Even though the company has recovered some of this morning’s losses, its current pricing still puts BrainChip among the worst-performing ASX shares of the day.
So what’s going on with BrainChip today that has elicited such a strong punishment from the markets?
Why is the BrainChip share price tanking today?
Well, as we covered yesterday, BrainChip was one of the few ASX shares that had a strong day of trading on Monday. As most ASX shares were crashing, BrainChip ended up racing higher, finishing at $1.21 a share. That was up around 14% for the day.
As we covered at the time, this rise might have had something to do with BrainChip listing the leading UK-based semiconductor company Arm as a partner. It seems this was enough to attract buyers yesterday.
But judging by the company’s share price performance over today thus far, this goodwill seems to have burned out. There hasn’t been any other news or announcements out of BrainChip this week, so that’s the best explanation we have right now.
At the current BrainChip share price, this ASX tech share has a market capitalisation of $2.07 billion.
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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block, Inc. The Motley Fool Australia has positions in and has recommended Block, Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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