After its recent share price sell off, I think BrainChip has become the best share to buy on the ASX. Here is why this is a great opportunity.
The post Why BrainChip (ASX:BRN) is the best share to buy today appeared first on Motley Fool Australia. –
BrainChip Holdings Ltd (ASX: BRN) saw its share price jump by 12.5% on Thursday, and it has risen by 620% in year-to-date trading. Despite this, I think this is the best share to buy on the ASX right now. It is an artificial intelligence company with existing products in security applications globally. Although all the company’s revenue is from security industries such as; casino play management, subways and international airports, it is still very much in start up mode.
Why is this the best share to buy?
The company is pioneering a first-of-a-kind neuromorphic chip called Akida, designed to replicate the human brain and sensory system. At this stage, it has been built and is in the early stages of prototype collaborations with carefully selected partners. These include United States-based Vorago Technologies for a Phase 1 NASA project, MagikEye Inc., and two auto manufacturers. The applications are very broad and the company is pushing us towards a future where many things suddenly become possible.
The Akida chip has many applications throughout defence, with the initial focus on space and drone technology due to its many physical advantages. For instance, it has low energy requirements, is lightweight, and has the ability to take the place of multiple processors and components.
Another reason I think BrainChip is currently the best share to buy is the highly diverse field of applications its product spans. These include autonomous vehicles, smart home applications, and speech and gesture recognition for gaming.
BrainChip CEO, Louis DiNardo, recently said:
You don’t need a lot of market share to build a big company, so we’re being somewhat selective about our target markets and applications. And fortunately for us, after a lot of hard work, we now have chips in hand. It’s not just about PowerPoint presentations .. we’ve actually got chips.
The company expects to see Akida commercialisation start from early CY21 with customers licensing its intellectual property. This is expected to be followed by full-scale chip manufacturing towards the end of CY21.
BrainChip is in the late stages of product development and is, I believe, leading the world in this technology. Although not currently profitable, the company’s addressable market is massive. Moreover, as the capabilities of this technology become more widely known, its addressable market will expand further.
The BrainChip share price has risen and fallen dramatically over the past month. So even with a 12.5% pop in the share price yesterday, I still believe it remains the best share to buy on the ASX at the moment. It is a very rare opportunity for investors to buy into an ASX listed semiconductor company in its early stages.
Where to invest $1,000 right now
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.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
- Why a2 Milk, BrainChip, Oil Search, & Starpharma shares are dropping lower
- The BrainChip (ASX:BRN) share price is down 65% in just three weeks
- Forget day trading and buy and hold these fantastic ASX shares
- BrainChip (ASX:BRN) and Novonix (NVX) were among the most traded shares on the ASX last week
- Has the BrainChip (ASX:BRN) share price weakness created a buying opportunity?
Motley Fool contributor Daryl Mather 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.