It’s been a pretty disappointing day for ASX shares this Wednesday so far. At the time of writing, the All Ordinaries Index (ASX: XAO) has slipped by 0.61%. But that’s nothing compared to the carnage we are seeing with the BrainChip Holdings Ltd (ASX: BRN) share price
Brainchip shares are having a clanger today. The ASX artificial intelligence share has lost a painful 7.06% at the time of writing. That puts the company’s share price down to 63.2 cents.
That’s a bit better than what was happening this morning though. Just before midday, the Brainchip share price fell to an intraday low of just 62 cents, which was a fall of almost 9% at that time.
So what’s going so wrong for Brainchip shares today? Well, it doesn’t look like it has anything to do with the company itself. Brainchip has released no ASX news or announcements today.
To be fair, we did hear news earlier this week that Brainchip CEO Sean Hehir has been selling Brainchip shares recently. But that was a few days ago, so it doesn’t look like this is relevant today.
Why is the Brainchip share price getting crushed?
It looks like Brainchip shares are getting caught up in the general sell-off we have seen in tech shares this Wednesday. Tech is one of the worst-performing sectors on the ASX right now.
Companies like Megaport Ltd (ASX: MP1), TechnologyOne Ltd (ASX: TNE), and Pro Medicus Ltd (ASX: PME) are all down between 4-6% at present. As are leading tech shares like WiseTech Global Ltd (ASX: WTC) and Altium Limited (ASX: ALU).
With these kinds of numbers, it was always going to be hard for Brainchip shares to do well today.
Additionally, Brainchip is also one of the ASX’s most short-sold shares right now, as my Fool colleague James recently reported. When a company has a high short-seller interest, it can dampen investor enthusiasm as well.
So the stars seem to have aligned for a rough day for the Brainchip share price this Wednesday.
The post Why is the BrainChip share price crumbling 7% on Wednesday? appeared first on The Motley Fool Australia.
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More reading
- Why Beach, Bellevue Gold, Block, and Brainchip shares are dropping
- The BrainChip CEO has sold $700,000 worth of his shares in a week. What’s going on?
- Why did the BrainChip share price smash the ASX 200 in November?
- Why are ASX tech shares having such a cracking run on Thursday?
- Best of a bad bunch: The 3 best-performing ASX 200 tech shares in November
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 Altium, Megaport, Pro Medicus, and WiseTech Global. The Motley Fool Australia has positions in and has recommended Pro Medicus and WiseTech Global. The Motley Fool Australia has recommended Megaport and Technology One. 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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