The Brainchip share price has jumped 9.3% to 47 cents following news the company has established a software development centre in India.
The post Brainchip (ASX:BRN) share price shoots 9% higher on software development centre appeared first on Motley Fool Australia. –
The Brainchip Holdings Ltd (ASX: BRN) share price has jumped 9.3% to 47 cents at the time of writing. The sharp Brainchip share price movement comes following an announcement of the company establishing a software development centre.
This compares with the All Ordinaries Index (ASX: XAO) which is down 0.73% to 6,025 points.
Brainchip presence in India
In mid-afternoon trade, the Brainchip share price is surging after the company advised the market it has established a software development centre in Hyderabad, India. A leading provider of ultra-low power, high performance artificial intelligence (AI) technology, Brainchip will seek to support development of its Akida Neuromorphic System-on-Chip (NSoC).
The new asset addition is expected to concentrate on the software and firmware development of the Akida NSoC. This includes critical components such as software for device drivers, the CPU complex and firmware for commercial implementation.
The development centre will be staffed by five software engineers and local management. Brainchip said that it does not expect the new entity to add any incremental expenses to its historical cash flows. This is due to staff having previously served the company as contracted service providers over several quarters.
Brainchip also stated that it has provided funds for the new facility and cost of equipment.
The company’s India division will complement the team in France, which hones in on the software environment and networks on the Akida neuron fabric. The implementation is intended to provide ease of use and execution in leveraging ultra-low power, event-based capability.
What did management say?
Brainchip CEO, Louis DiNardo, validated the company’s new establishment to shareholders. He said:
We have established BrainChip Systems India to support the requirement for robust system software and firmware. As Akida is implemented commercially, it is important that our software is mature and provides a positive user experience.
Furthermore, Mr DiNardo commented:
We have a very seasoned management and engineering team in Hyderabad. Having a BrainChip entity in India will allow us to recruit and retain experienced engineering professionals as we expand operations to meet market demands. The India group has been working exclusively on Akida software and firmware development for several quarters and we are fortunate to have them join us as we bring Akida to market.
Is the Brainchip share price too cheap to ignore?
The Brainchip share price has taken shareholders on a wild ride in recent times. Brainchip shares started the year at 4.7 cents, and climbed to an all-time high of 97 cents. However, the last two weeks of heavy selling in Brainchip shares have been attributed to profit takers. Nonetheless, the Brainchip share price is still up over 1000% in the last nine months.
In my opinion, Brainchip has a lot of promise that could one day see it become a multibillion-dollar market cap share. Its advanced Akida chip may offer huge advantages for company projects such as NASA’s future missions.
At a market capitalisation of $700 million, Brainchip is still a small-cap share that is growing. Should the company be able to deliver on its potential, I think that the Brainchip share price is extremely attractive at a price of 47 cents.
These 3 stocks could be the next big movers in 2020
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.
*Returns as of 6/8/2020
- These 4 ASX shares have grown more than 100% this year
- Could this be the large cap version of the Brainchip (ASX:BRN) share price?
- BrainChip (ASX:BRN) share price crashes a further 20% lower: Where next for its shares?
- Why the BrainChip (ASX:BRN) share price is crashing 21% lower today
- BrainChip (ASX:BRN) and Zip (ASX:Z1P) were among the most traded shares on the ASX last week
Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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.