BrainChip share price surges 11% as ASX tech stocks rally on Thursday

A man with a scrappy beard and wearing dark sunglasses and a beanie head covering raises a fist in happy celebration as he sits at is computer in a home environment.A man with a scrappy beard and wearing dark sunglasses and a beanie head covering raises a fist in happy celebration as he sits at is computer in a home environment.

The BrainChip Holdings Ltd (ASX: BRN) share price is surging today despite no new announcements from the company.

At the time of writing, the artificial intelligence (AI) technology company’s shares are up 11.5% to 87 cents.

What’s happening with BrainChip today?

Investors are bidding up the BrainChip share price following a strong rebound across the S&P/ASX All Technology Index (ASX: XTX).

After falling almost 10% in a week, the tech sector is powering ahead by 1.63% to 1,854.5 points today.

In addition, it appears investors are taking advantage of the share price weakness in BrainChip.

It fell to a low of 76.5 cents yesterday, a level not seen since the end of December 2021.

BrainChip shares recorded seven days of consecutive losses from 6 June until yesterday, shedding 30% in value.

Looking on the bright side, BrainChip shares will be added to the S&P/ASX 200 Index (ASX: XJO) from 20 June.

The S&P Dow Jones Indices announced its quarterly rebalance of the S&P/ASX Indices at the beginning of this month.

Most fund managers are required to buy or sell shares within specific indexes such as the ASX 200. With this in mind, investors usually like to take pre-emptive action in buying these shares before being accessible to fund managers.

BrainChip share price snapshot

Despite tumbling in recent times, the BrainChip share price is up 60% over the last 12 months.

Year-to-date it has also fared considerably well in spite of the volatility, up 28%.

The company’s share price reached an all-time high of $2.34 in January 2022 before reversing its incredible gains.

On valuation grounds, BrainChip commands a market capitalisation of around $1.5 billion.

The post BrainChip share price surges 11% as ASX tech stocks rally on Thursday 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 Scott Phillips.

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