The BrainChip Holdings Ltd (ASX: BRN) share price is falling today despite the S&P/ASX 200 Index (ASX: XJO) travelling higher.
At the time of writing, the artificial intelligence (AI) technology companyâs shares are down 4.07% to $1.06 apiece.
In comparison, the benchmark index is up 0.49% to 7,099 points following a positive session on Wall Street overnight.
Whatâs driving BrainChip shares lower?
Despite no announcements from the company, investors are selling off the BrainChip share price.
It appears a weakness across the S&P/ASX All Technology Index (ASX: XTX) is hurting shares in the AI on-chip processing and learning company.
After seesawing since this time last week, the tech sector is powering down by 0.95% on Tuesday.
In addition, there could be some profit taking by investors following the recent rise of BrainChip shares.
After surging to a six-month high of $1.365 on 28 July, the gradual decline seems to be coming off the back of a broader market consensus.
BrainChip shares, for most of the year, normally range around the $1 mark.
When there are buyers pushing up or down a share price, it is usually noise coming from the microenvironment.
It may be linked to the political tensions between the US and China over the Taiwan issue.
If the situation heats up, this could have massive ramifications for the worldâs most important chip developer Taiwan Semiconductor Manufacturing Co. (TSM).
The company makes more than 90% of advanced chips produced globally.
BrainChip share price snapshot
Despite tumbling 6% this week, the BrainChip share price is up 116% over the last 12 months.
Year-to-date, it’s also fared well — up 56% — despite the recent volatility on the ASX.
The companyâs share price reached an all-time high of $2.34 in January 2022, before sharply pulling back.
On valuation grounds, BrainChip commands a market capitalisation of around $1.83 billion.
The post Why is the BrainChip share price sinking today? appeared first on The Motley Fool Australia.
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More reading
- Here are the top 10 ASX 200 shares today
- Brainchip share price powers up another 5% on Thursday
- Why is the BrainChip share price bouncing 6% higher today?
- 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
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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