BrainChip (ASX:BRN) share price crashes a further 20% lower: Where next for its shares?

The BrainChip Holdings Ltd (ASX:BRN) share price is crashing lower again on Wednesday. Where next for the BrainChip share price?
The post BrainChip (ASX:BRN) share price crashes a further 20% lower: Where next for its shares? appeared first on Motley Fool Australia. –

Young man looking afraid representing scared BNPL shares investor

The BrainChip Holdings Ltd (ASX: BRN) share price has come under pressure again on Wednesday.

At one stage in morning trade the artificial intelligence technology company’s shares dropped as much as 20% to 39 cents.

The BrainChip share price has recovered a good portion of these declines now but is still down a sizeable 11% to 43.5 cents.

This is over 55% lower than the record high of 97 cents that its shares hit last week.

A fall from grace.

It certainly has been a fall from grace for the BrainChip share price in recent days.

Investors were fighting to get hold of the company’s shares this month after it announced a collaboration with VORAGO Technologies at the start of September.

This collaboration is intended to support a Phase I NASA program for a neuromorphic processor that meets spaceflight requirements. Management believes its Akida neuromorphic processor is uniquely suited for spaceflight and aerospace applications. This is because the device is a complete neural processor and does not require an external CPU, memory, or Deep Learning Accelerator.

While potentially working with NASA would be a great achievement, it’s still a long way from happening.

With the Phase I program, NASA invites companies to provide “concept of operations of the research topic, simulations and preliminary results. Early development and delivery of prototype hardware/software is encouraged.”

After which, a working prototype will be required in phase 2.

NASA explains: “Phase II deliverables include a working prototype of the proposed product and/or software, along with documentation and tools necessary for NASA to use the product and/or modify and use the software. Hardware products should include both layout and simulation.”

Clearly, there’s still a lot of work ahead for BrainChip and VORAGO. In light of this, I don’t believe this news warranted its shares rocketing higher and taking its market capitalisation well beyond $1 billion.

Where next for the BrainChip share price?

Barring some extraordinary developments, I think it is very unlikely we’ll see the BrainChip share price back at its previous highs any time soon (if ever).

As a result, I would suggest investors skip speculative shares like this and consider profitable tech companies such as Altium Limited (ASX: ALU) and Appen Ltd (ASX: APX).

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Altium. The Motley Fool Australia owns shares of Appen Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post BrainChip (ASX:BRN) share price crashes a further 20% lower: Where next for its shares? appeared first on Motley Fool Australia.

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