Why is the BrainChip share price bouncing 6% higher today?

The BrainChip Holdings Ltd (ASX: BRN) share price is fired up on Tuesday despite no announcements from the company.

At the market open, the artificial intelligence (AI) technology company’s shares started off at $1.13.

However, throughout the day, the shares have gradually climbed to reach an intraday high of $1.21, up 6.14%.

Let’s take a look at what’s moving the BrainChip share price today.

Why is BrainChip soaring on Tuesday?

Investors are bidding up the BrainChip share price following a broader uptick in the S&P/ASX All Technology Index (ASX: XTX).

After touching a 23-month low of 1,756 points, the ASX tech sector has continued to rebound strongly as investor confidence grows.

Today, the benchmark index for Australian technology-orientated companies is up 1.77% to 2,299 points, making it the best-performing sector.

The market appears to have shrugged off the weaker-than-expected revenue from Nvidia Corporation and other semiconductor companies.

Currently, the NASDAQ 100 futures are in the green by 0.23% as Wall Street looks ahead to more earnings results and inflation data. This will provide a clearer sign on how the economy is tracking and if another rate hike is around the corner.

The July consumer price index in the US is due to be released on Wednesday.

Whatever happens on the NASDAQ will undoubtedly impact the ASX following the latest inflationary report.

Investors may want to keep a close eye on this piece of information.

BrainChip share price snapshot

Since the beginning of March, the BrainChip share price has been in a sideways channel around the $1 mark.

This is a sharp contrast from when its shares were fetching $2.34 at the start of 2022.

Nonetheless, if you invested 12 months ago, you’d be up 116%.

BrainChip presides a market capitalisation of approximately $1.95 billion.

The post Why is the BrainChip share price bouncing 6% higher today? appeared first on The Motley Fool Australia.

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More reading

• This US investment house has made tens of millions from Brainchip. Guess which other ASX share it’s backing
• Here are the top 10 ASX 200 shares today
• Why did the BrainChip share price rocket 36% in July?
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Why BrainChip, Fortescue, PointsBet, and Zip shares are dropping

Motley Fool contributor Aaron Teboneras 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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