The BrainChip Holdings Ltd (ASX: BRN) share price is tumbling today despite no news being released from the technology company.

So far today, the BrainChip share price has reached an intraday low of 50 cents. That’s a 15.25% fall from yesterday’s close and a new 52-week trough for the small-cap ASX technology share.

BrainChip shares are currently trading for 51.5 cents, down 12.7%.

The price movement triggered an ASX price query but BrainChip said it could not explain the crash.

The company confirmed insiders had no information that has not been announced to the market that might explain the share price crash or high trading volumes.

According to the ASX website, more than 23.2 million BrainChip shares have changed hands today.

That is almost three times BrainChip’s average 30-day trading volume of 7.96 million shares.

BrainChip share price volatility continues

As you can see from the chart below, the BrainChip share price is highly volatile. Its performance over the past year probably represents the heartbeat of many shareholders, with erratic ups and downs.

Let’s take a look at what’s happening at BrainChip and how its share price has been travelling.

Over the past 12 months, the BrainChip share price has trended down from a high of $1.54 to a low of 50 cents today. Over the period, the shares have lost more than 60% of their value.

The last time we heard any price-sensitive news was on 30 January when the company released a quarterly update.

Over the three months to 31 December, BrainChip continued to operate at a loss with a cash outflow of US$1.9 million. It reported cash receipts from customers of US$1.164 million.

It ended the period with a cash balance of US$23.1 million. The BrainChip share price tumbled 2.3% on the day.

Yesterday, my colleague James outlined the bull and bear case for investors on BrainChip shares.

What does BrainChip do again?

BrainChip is an ASX artificial intelligence (AI) share.

The company has developed the world’s first commercial neuromorphic processor, called Akida.

As my colleague Kate reports, Akida is a spiking neural network that can be integrated into computer chips to deliver AI reasoning and conclusions from sensor-captured data. 

It can be used in vision and audio applications in various industries, including automotive, robotics, aerospace, and cybersecurity. 

BrainChip shipped its first production chips in 2021 and is now seeking to manufacture at volume.

BrainChip has a market capitalisation of just over $1 billion.

The post Why is the BrainChip share price crashing 15% on Wednesday? appeared first on The Motley Fool Australia.

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More reading

• BrainChip shares: The bull and bear case
• Could 2023 be the year these ASX AI stocks come roaring back?
• Why has the BrainChip share price crashed 19% in 2023?
• Why Brainchip, Core Lithium, IAG, and Nick Scali shares are dropping today
• These are the 10 most shorted ASX shares

Motley Fool contributor Bronwyn Allen 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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