Why is the BrainChip share price leaping 7% on Friday?

A businessman jumps outdoors in sky between two rocks.A businessman jumps outdoors in sky between two rocks.

The BrainChip Holdings Ltd (ASX: BRN) share price is on the move again today. At the time of writing, BrainChip’s shares are trading 7.14% higher at $1.13 apiece.

The broader market is also in the green on Friday. The All Ordinaries Index (ASX: XAO) and the S&P/ASX 200 Index (ASX: XJO) are both currently up 1.4%.

Let’s take a look at what might be bolstering the $1.9 billion artificial intelligence (AI) stock higher today.

What’s going on with BrainChip lately?

The BrainChip share price is back in the green on Friday, bringing its gains for this week so far to 4.25%.

For context, the S&P/ASX All Technology Index (ASX: XTX) is currently 5% lower than it was at the end of last week. Although, it is up 3.9% today.

To quickly recap, the stock surged 14% on Monday before tumbling 15% on Tuesday. It regained 4% on Wednesday and ditched 1% on Thursday amid a tech sell-off.

The last time the market heard news from the company was this time last week when it responded to an ASX speeding ticket. Though, its reply didn’t clear up any confusion among market watchers.  

BrainChip said it had no idea what could have sent its share price up to 18% higher during intraday trade that day. And its movements since have come with no additional clarity.

However, Swiss human behavioural analytics AI company NVISO recently announced it’s using BrainChip’s technology to create a computer capable of reading human emotions.

BrainChip’s chief marketing officer Jerome Nadel said the company was excited about NVISO’s technology, the speed at which it has been developed, and the prospect of delivering it to the market.

The Swiss company is also using BrainChip’s technology to create in-cabin monitoring systems for cars.

While the news wasn’t released to the ASX or on BrainChip’s website, the company did share NVISO’s releases to social media.

BrainChip share price snapshot

The All Technology Index has slumped 33% in 2022.

Fortunately, the BrainChip share price has managed to dodge the dump. The AI stock has gained 43% year to date.

It has also increased 95% over the last 12 months while the benchmark tech index has tumbled 18%.

The post Why is the BrainChip share price leaping 7% on Friday? appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper 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.

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