The BrainChip Holdings Ltd (ASX: BRN) share price is heading in the right direction at last on Thursday.
In afternoon trade, the artificial intelligence technology company’s shares are up 9% to $1.01.
This will come as a big relief to shareholders as, prior to today, the BrainChip share price was down 35% in the space of a month.
Though, longer term shareholders won’t be too concerned by that. The company’s shares are still up 80% over the last 12 months.
Why is the BrainChip share price charging higher today?
The catalyst for the rise in the BrainChip share price today has been a rally in the tech sector.
This follows a very strong night on the tech-focused Nasdaq index, which rose 3.8% after investors responded positively to the US Federal Reserve’s decision to raise interest rates for the first time in three years.
The general consensus is that the market was pleased with Fed Chair Jerome Powell stating that the US economy is “very strong” and can handle monetary tightening. And given that the prospect of rate increases has long been priced into the market, this positive rhetoric had a big impact on sentiment.
Though, only time will tell where the BrainChip share price goes next. It has been hyping up its technology for some time now. As a result, investors will no doubt now be expecting to see it out there in the world and generating revenues that justify a ~$1.6 billion market capitalisation.
The post Here’s why the BrainChip (ASX:BRN) share price is up 9% today appeared first on The Motley Fool Australia.
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More reading
- Why is the BrainChip (ASX:BRN) share price jumping 8% today?
- Brainchip (ASX:BRN) share price sinks 7% as ‘Most successful year in history’ comes at a cost
Motley Fool contributor James Mickleboro 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 Bruce Jackson.
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