Why did the BrainChip Holdings share price leap 14% on Monday?

A woman holds a soldering tool as she sits in front of a computer screen while working on the manufacturing of technology equipment in a laboratory environment.A woman holds a soldering tool as she sits in front of a computer screen while working on the manufacturing of technology equipment in a laboratory environment.

The BrainChip Holdings Ltd (ASX: BRN) share price had a stellar day on the market on Monday.

The company’s shares leapt 13.87% to close at 98.5 cents. For perspective, the  S&P/ASX 200 Index (ASX: XJO) rose 1.23% today.

Let’s take a look at what could have impacted the Brainchip share price today.

What’s going on?

Brainchip shares soared today, but they were not alone among the ASX technology shares. The Wisetech Global Ltd (ASX: WTC) share price jumped 7.16% while Life360 Inc (ASX: 360) gained 8.24%.

The S&P/ASX All Technology Index (ASX: XTX) closed 2.54% higher today.

Today’s gains in the technology sector followed in the footsteps of the United States on Friday. The technology-heavy NASDAQ leapt 2.31% in Friday’s trade. The NASDAQ-100 Technology Sector Index (NASDAQ: NDXT) jumped 2.47%. This followed some positive consumer economic data, the Washington Post reported.

Brainchip did not release any news to the market on Monday. In early June, the company was added to the ASX 200 index.

Brainchip is a a global artificial intelligence (AI) chip maker. The company has partnerships with high profile companies including NASA and Mercedes.

The AI cybersecurity market is predicted to be worth US$133.8 billion by 2030, according to a report cited by Globe Newswire today.

It stated the AI cybersecurity market was worth $14.9 billion in 2021.

Brainchip share price snapshot

The Brainchip share price has soared 107% in a year, rising nearly 45% in the year to date.

For perspective, the benchmark ASX 200 index has shed 9% in the past year.

Brainchip has a market capitalisation of nearly $1.7 billion based on the current share price.

The post Why did the BrainChip Holdings share price leap 14% on Monday? appeared first on The Motley Fool Australia.

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More reading

Motley Fool contributor Monica O’Shea 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 Life360, Inc. and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. 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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