BrainChip share price rebounds 9% following speeding ticket

Man pointing at a blue rising share price graph.Man pointing at a blue rising share price graph.

The BrainChip Holdings Ltd (ASX: BRN) share price finished the session on Tuesday up 8.82% to 55.5 cents.

This is a big turnaround from yesterday when the ASX tech share lost 15% during trading to reach a new 52-week trough of 50 cents.

The dramatic drop prompted an official ASX price query but BrainChip said it could not explain the crash.

What’s driving the BrainChip share price rise?

There is no news from the company today. Thus, it’s safe to assume that today’s 9% gain is a reaction from traders ‘buying the dip‘ on the BrainChip share price for a potential short-term gain.

We often see this sort of volatility in speculative small-cap shares, especially those in the tech sector. BrainChip also operates in the artificial intelligence (AI) space, which is still in its infancy.

Brainchip has developed the world’s first commercial neuromorphic processor, called Akida. It can be integrated into computer chips to deliver AI reasoning and conclusions from sensor-captured data. 

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

Take a look at what the BrainChip share price has done over the past year in the chart below.

Great day for ASX tech shares

BrainChip may have also benefitted from a great day on the market for ASX tech shares.

The S&P/ASX 200 Information Technology Index (ASX: XIJ) was the second-best performer of the 11 market sectors today, up 2.71% at the market close.

ASX tech nano cap Revasum Inc (ASX: RVS) was the top-performing tech share today, up by 45.46%.

ASX tech shares and ASX consumer discretionary shares moved the most today after the Australian Bureau of Statistics announced that the unemployment rate rose from 3.5% to 3.7% last month.

The post BrainChip share price rebounds 9% following speeding ticket appeared first on The Motley Fool Australia.

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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.

from The Motley Fool Australia

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