Why is the BrainChip share price struggling on Friday?

What's dragging the BrainChip share price lower? Let's take a look.

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Key points
  • The BrainChip share price is edging lower during early afternoon trade
  • The S&P/ASX All Technology Index is retracing on the back of heavy losses across the Nasdaq overnight
  • BrainChip is up more than 100% over the last 12 months

The BrainChip Holdings Ltd (ASX: BRN) share price is in the red despite no announcements from the company today.

At the time of writing, the artificial intelligence (AI) technology company's shares are down 1.16% to 86 cents.

For context, the S&P/ASX 200 Index (ASX: XJO) is also heading south, down 0.68% to 6,510.1 points.

Let's take a look below to find out what's dragging down BrainChip shares on Friday.

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.

Image source: Getty Images

What's happening with BrainChip?

Investors are selling off the BrainChip share price following a steep dive across the S&P/ASX All Technology Index (ASX: XTX) today.

Currently, the Aussie tech sector is the worst performer across the ASX Indices, retracing by 2.34% to 1,957.8 points.

This comes after Wall Street recorded heavy losses overnight, with the tech-heavy Nasdaq also tumbling 2.86%.

The market sell-off restarted as investors weighed up the US Fed Reserve raising interest rates again to combat inflation.

In addition, Apple (NASDAQ: AAPL) shares, which make up a considerable portion of the Nasdaq, fell 4.9% on reports that demand for its iPhone is weakening.

Nonetheless, this has impacted the majority of tech stocks on the ASX.

It is worth noting that September has historically been a terrible month for share market returns. Dubbed by investors the 'September effect', it's widely regarding the worst time to hold stocks in the year.

BrainChip share price snapshot

Despite tumbling 6% in the last week, the BrainChip share price is up 115% over the last 12 months.

Year-to-date, it has also fared well despite the recent volatility on the ASX, up 25%.

Based on today's price, BrainChip commands a market capitalisation of around $1.49 billion.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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