Home / ASX / Brainchip shares rally on new customer signups

Brainchip shares rally on new customer signups


Australia’s very own home-grown semiconductor company, BrainChip Holdings (ASX:BRN), has more than doubled in price in 2022 so far, as investors lap-up news including that of a new US patent, the eighth patent the company has secured since 2008. 

BrainChip bills itself as the world’s first and only commercial producer of neuromorphic artificial intelligence chips. What that means is that BrainChip’s AI processor mimics the neural networks of the human brain. By mimicking brain processing, BrainChip has pioneered a processing architecture called Akida.

  • The Akida processor is a high-performance, small, ultra-low power unit that enables a wide array of “edge” capabilities. (“Edge” in this context means a micro-processor that can process information onboard a device, in real-time, onsite, where the data is created, to minimise the need for processing in a remote data centre. Without the data having to go to the cloud, thus saving huge amounts of bandwidth that otherwise be required; it’s at the “edge” of the cloud.) 

    At the recent Consumer Electronics show in Las Vegas, Mercedes-Benz demonstrated this BrainChip microchip in voice-related technology in its latest Vision EQXX electric concept vehicle. The German car giant likes the fact that neuromorphic  computing is a form of information processing that reduces energy consumption, and also the fact that the AI software and hardware from BrainChip is five to ten times more efficient than the voice control technologies that have previously been used in the auto market. 

    Late last year, BrainChip landed a landmark deal which will see Japanese semiconductor firm, MegaChip use Akida to develop next-generation edge-based AI solutions.

    The deal will see MegaChip design and manufacture the Akida technology into external customers’ systems on chip designs. In return. BrainChip will receive the licensing fee and payment-related fees.

    In another January announcement, the company told the ASX that California-based technology Information Systems Laboratories, Inc. (ISL) will use its Akida processor to develop an AI-based radar research solution for the Air Force Research Laboratory. 

    The BRN share price has been pushed higher by this steady flow of good news, to the point where it is now a  $3 billion company. 

    It is an amazing story, given the humble beginnings. BrainChip listed in September 2015, through the backdoor, using the shell of dormant minerals explorer Aziana. It raised $4 million through the issue of shares at 15 cents, giving it a market capitalisation of $90.2 million. At $1.67, the company is now valued at just under $3 billion. That is a higher market value than Megaport Ltd (ASX: MP1), at $2.3 billion, and Dicker Data Ltd (ASX: DDR), at $2.2 billion. Although BrainChip does not make any money, the company expects the Akida to have three revenue streams. It firstly will look to license Akida to other players in the semiconductor industry. BrainChip will receive royalties for each semiconductor sold that contains Akida IP.

    With the granting of a new US patent that protects the company’s neuro-morphic processor, BrainChip is edging closer to taking orders and commencing internal testing. The recent semiconductor shortage and shift to artificial intelligence should underscore demand for cutting-edge semiconductors for the foreseeable future. 

    Print Article

    Why bank analysts prefer this quality lender over the rest

    Morgans have released a summary of the key points from the recent bank reporting season. Of the banks that reported, Morgans says NAB was in line with consensus expectations, while ANZ and WBC beat consensus earnings expectations. Despite this, Morgans holds NAB as having the strongest 1H22 performance overall. NAB produced the strongest profit growth…

    Ishan Dan | 18th May 2022 | More
    Two of the most bullish bets on the ASX

    Markets around the world are still in freefall as losses mount as a result of investors moving out of risk partly due to inflation fears and supply chain disruptions partly due to the crisis in Ukraine and Covid lockdowns in China. The market is yet to become comfortable with the rate hike cycle that is…

    Ishan Dan | 18th May 2022 | More
    Top of the pops – top global funds had one thing in common

    March stands out as being one of the most difficult periods for investors in a generation. On the one hand, bond markets send fixed income to its worst return in more decades, and on the other, equity markets were sold off broadly on valuation concerns as bond yields ended a forty-year downward trend. It is…

    Drew Meredith | 18th May 2022 | More
    What does High Conviction mean?
    Ishan Dan | 10th Mar 2021 | More
    Inside CSL’s big end of year deal
    Lachlan Buur-Jensen | 15th Dec 2021 | More
    Battery materials in short supply but valuation is key
    Ishan Dan | 25th Mar 2022 | More
    Behind Brickworks’ (ASX:BKW) record profit
    Jaz Harrison | 25th Mar 2022 | More
    Is JB Hi-Fi the best retailer in Australia?
    Lachlan Buur-Jensen | 25th Mar 2022 | More
    Three ASX stocks ripe for a takeover
    Lachlan Buur-Jensen | 23rd Mar 2022 | More