It has been a difficult year for Brainchip Holdings Ltd (ASX: BRN) shares.
In morning trade, the semiconductor companyâs shares are up 1% to 66.2 cents. However, despite this, the Brainchip share price is still down 16% since the start of the year.
But as you can see below, this is only telling half the story. At one stage, the companyâs shares were up as high as $2.34.
From that level, its shares have lost a whopping 72% of their value.
Will 2023 be better for the Brainchip share price?
Whether 2023 will be better for the Brainchip share price will almost certainly depend on its revenue generation.
With a market capitalisation of $1.1 billion, Brainchip appears to be priced for success. And with short sellers building positions, there could be an almighty crash if the company doesnât start justifying its valuation in the coming quarters with some significant revenue.
Especially after management hyped up its sales potential in its most recent quarterly update. Brainchipâs CEO, Sean Hehir, said:
We are seeing the greatest amount of sales activity and engagement in the Companyâs history.
Will Brainchip deliver?
It is worth remembering that thereâs certainly no guarantee of success in an extremely competitive industry dominated by behemoths such as AMD, Intel, Nvidia, and Qualcomm.
In addition, Brainchip has a terrible record of delivering on its lofty goals. Since being acquired by a mining company called Aziana back in early 2015, the company has announced countless agreements that have gone nowhere.
Time will tell if history repeats itself and shareholders get burned in 2023.
Perhaps the only thing that you could guarantee in 2023 is management being issued millions more Brainchip shares with extremely low hurdles.
The post Will 2023 be a rewarding year to own Brainchip shares? appeared first on The Motley Fool Australia.
Billionaire: “It’s the foundation of how I invest in stocks these days…”
Shark Tank billionaire Mark Cuban built his fortune on understanding technology. So when he says this one development is already taking over the business world, you may need to sit up and pay close attention.
He predicts it will soon become as essential to businesses as personal laptops and smartphones.
And it’s so revolutionary he’s even admitted “It’s the foundation of how I invest in stocks these days…”
So if you’re looking to get in front of a groundbreaking innovation… You’ll need to see this…
Learn more about our AI Boom report
*Returns as of December 1 2022
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More reading
- 5 things to watch on the ASX 200 on Wednesday
- Here are the 10 most shorted ASX shares
- Why has the BrainChip share price rocketed 17% in 4 days?
- Lithium, miners, and tech shares, oh my! Hereâs where Aussies put their ASX money in 2022
- Here are the top 10 ASX 200 shares today
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 Scott Phillips.
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