2024 BrainChip Discussion, page-9799

Why you should:

• First neuromorphic technology commercially available.
• Gigantic market potential (the next big thing). Endless list of potential applications.
• Ridiculously low energy consumption for AI compute versus current established AI hardware. While currently focused on AI at the Edge, energy consumption trends for cloud server AI processing will force a rethink and search for power efficient technologies.
• Established impressive list of engagements with many large companies & research organizations. Plenty of evidence that industry is taking a long hard look at it and not dismissing it early
• So far, well funded and seem able to raise capital
• Impressive geographic spread into USA, India, Europe with head-office well positioned in Silicon Valley.
• Quality board and senior executives mostly US nationals and deep career history (and contacts) in relevant industry sectors.
• Deep bench of technical capability for both R&D and technical support
• No negative reports of technology lacking capability
• Extremely undervalued and opportunity to pick-up a substantial holding relatively low cost. If it achieves commercial acceptance, price should rockets well into the dollars making this both a potential instant multi-bagger as well as a long term hold. Pick your strategy or do both.

Why you shouldn't:

• No getting around it - it's a highly speculative stock - more gamble than certainty.
• Big questions around why commercialization hasn't yet been achieved. Could be explained by the fact that it takes time to evaluate technology, achieve sufficient expertise to undertake competent development, then start designing applications, seek investment approval, manufacturing strategy etc. - OR - are companies finding better, less risky ways of doing the same thing?
• Lack of transparency regarding "what's happening?" again, could be explained by reluctance to make bold predictions (in case they evaporate) and ASX restrictions on misleading investors, plus potential customers don't want competitors to know what they are working on. But, might also be "nothing is happening" - we don't know.
• Failure seems unlikely, but the history of technology investment is littered with highly promising technology companies failing.
• While Akida Tech, and TENNS etc. is highly impressive and capable, development in this space is continuous - it's not impossible that something could be announced tomorrow that eclipses BRN and makes it irrelevant.
• BRN is a technology minnow compared with the likes of INTEL, NVIDIA, IBM etc. - many a technology minnow with superior tech has been outgunned by the big boys.
• Edge AI is still very much in its infancy - lots of hype - very little delivery. There is no question that it will hit the knee of the exponential curve and explode, but will it happen soon enough to keep BRN viable and can we wait that long?
• Tech team at BRN are vulnerable to poaching. BRN has to spend big bucks to keep them putting strain on finances, hence the huge number of shares on issue. We might lose critical key technical people and executives at just the wrong time.
• How long do you keep invested when performance hasn't been achieved, meanwhile your invest dollars are tied-up when other opportunities could have already delivered?

There you go.
That's my 22 cents worth.