A meteoric rally in an Australian penny stock is fast unraveling after confounding not just market watchers but also the company’s CEO.
BrainChip Holdings Ltd., an artificial intelligence-focused startup whose flagship product is yet to be made widely available for commercial use, saw its 2020 gains propel to 1,500% earlier this month. While concerns about overheating have seen the stock getting hammered since, its 762% advance year-to-date still makes for one of the best performances among technology names in Asia Pacific, according to data compiled by Bloomberg.
“I was surprised about the peak” Louis DiNardo, BrainChip’s chief executive officer, said in an interview. “Shares were overbought for a company that’s just introducing its product.”
BrainChip is one in a long list of global technology stocks that have surged this year as the pandemic put investor spotlight on companies focused on technological innovation. BrainChip is developing a processor, Akida, that can