Shares in Brainchip Holdings Ltd (ASX: BRN) are inching lower today, extending losses to 13% for the month.
At the time of writing, the Brainchip share price is trading at 89.75 cents apiece, well off its 52-week high of $2.13 in January.
What’s up with the Brainchip share price?
Tech shares have been rocked in 2022 amid a shift in investor and macro-sentiment plus the emergence of new geopolitical risks in Europe.
Shares spiked back in March after a company report advising it had signed new sales partnerships with companies in Europe and Israel for its Akida platform.
Aside from that, it’s been a quiet few weeks from the tech holding company. Most of the downside can be attributed to sector weakness that’s also hurt many other ASX tech names.
The S&P/ASX All Technology Index (XTX) has slipped 19% this year to date, making it the worst performing sector on the Australian market.
As the yields on long-dated government bonds rise, and inflation data continues to suggest a costly period ahead, tech shares have fallen out of the limelight in 2022.
In the US in particular, the big FAANG stocks are no longer the darlings of the NYSE and Nasdaq.
Brainchip has suffered a similar fate in 2022. It’s stumbled off the former peak and now trades back near 2021 levels once again. Despite the reset, it is still trading 32% in the green this year to date.
However, from its previous high on 19 January, Brainchip has tanked 58%. Shareholders who bought in at that time need to see a return of more than 100% in order to reach that level again.
It’s also down 18% for the year, meaning Brainchip is now trailing the tech sector by a considerable amount, and the benchmark S&P/ASX 200 Index (ASX: XJO) by an even further distance.
The post Why has the Brainchip share price tumbled 13% in a month? appeared first on The Motley Fool Australia.
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More reading
- Here’s a look at the laggards from ASX tech shares last quarter
- Compare the ASX share: An analysis of BrainChip vs Archer Materials
- Let’s get technical! 5 best All Ords tech shares of the quarter revealed
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- Guess which ASX tech shares are leading the pack today?
Motley Fool contributor Zach Bristow 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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