Why BrainChip (ASX:BRN) is the best share to buy today
Daryl Mather | October 2, 2020 8:27am | More on:BRN
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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:
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.
Foolish takeaway
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.
Author: Daryl Mather
Daryl Mather
Daryl Mather started investing in 1987 after the October share market crash and has remained invested for the 33 years since. He has enjoyed a successful global business career in utilities, mining and oil and gas. His investing interests include REITs, Fintechs, Medical Science, Gold and Iron Ore. Daryl is continuing his education in the financial sector and spends his free time reading annual reports and weight training.
This is somewhat great analysis on Brainchip... Not detailed but its got some great takeaways.
The Motley Fool seems to be all over the place with its opinions with Brainchip, but its really the individual reporters that we should focus on when regarding credibility and the opposing opinion!
Daryl Manther has a great amount of experience on the share market (33years) and has produced a positive analysis on Brainchip. He has most likely has found and at least understood that these unicorn companies dont necessarily follow basic fundamentals.
All the younger reporters who are fresh out of UNI and with minimal experience tend to produce a more negative and strong willed opinion regarding Brainchip. Probably because they tend to stick by the regular indicators, rules and fundamentals when investing and dont have enough experience when that 1 Unicorn of a company comes by every decade or so!
Just my opinions but defiantly worth a read!
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