BUY ALERT: BRAINCHIP (BRCHF)

We’re taking this market opportunity to make another addition to our site portfolio. This addition comes in the form of BrainChip Holdings (BRCHF). With investors having recently fallen in love with AI technology, we decided to add what we believe to be an AI-focused stock with huge potential. To understand why, we must first distinguish between edge AI and cloud AI.

The AI that's typically utilized by programs such as ChatGPT and advanced by companies such as Nvidia (NVDA) is cloud AI, which essentially means that the computing that’s occurring takes place in the cloud, disconnected from the area that the actual device is located in. This technology is still highly impressive and capable of quickly transferring data and responses, even with this barrier. Furthermore, the extra space that cloud AI processing provides allows programs to crunch numbers and equations of enormous proportions, making it the “go-to,” so to speak. Without this development, we wouldn’t have gotten nearly as far as we have today with AI technology.

Although the goals of edge AI are the same, the way processes are carried out is entirely different. Instead of pulling information from the cloud, it’s pulled from nearby networks on the “edge” of the location where the request was made. This technology is also more reactive, efficient, and secure than cloud-based AI because information is transferred and pulled locally rather than from what is essentially a singular large server bank. This technology is quicker because it has less room to travel. But cloud AI is fast, isn’t it? Well, yes, it is, but let me ask you something: if you were to drive a vehicle with AI sensors, how fast would you want it to recognize that you’re about to hit something in front or behind you? I imagine the standard answer would be, “As soon as possible!” Sometimes this information is incredibly pertinent, and edge AI works to compute that information as quickly as possible—as fast as the human brain, even.

This technology is more secure because sensitive information only needs to travel to the edge rather than to a centralized location like the cloud. The fact that it’s not competing for internet traffic in the same way that moving things to and from the cloud might is also a huge benefit for security and efficiency. A couple of other things worth noting are that edge AI is cheaper because it computes and transfers data locally and that it doesn’t need internet access to calculate information like cloud AI applications do.

With all that said, you can see why a company focused on edge AI might be worth watching! BrainChip has engineered a technology known as Akida, which is essentially a cognitive processor. It’s designed explicitly with the advancement and distribution of edge AI in mind. The company’s MetaTF software also helps coders bridge the gap between their code and neuromorphic (meaning resembling the brain) computing, automatically making adopting this technology easier than it would have been otherwise. It makes their technology more accessible to larger audiences.

BrainChip released its second generation of Akida in March, and the technology continues to improve. They have partnerships with companies such as NASA and Mercedes-Benz and continue to grow their list of clients. Although the company’s revenue will remain unpredictable for the near future, we believe there is some serious potential here. As such, we’ve purchased the stock at $0.30.