AI ASX Stock Unveiling Strong Growth Potential

Team Veye | 23-Dec-2024

New collaboration with Frontgrade Gaisler presents this AI stock with expansion opportunities. BrainChip Holdings, one of the growing companies to invest in, by securing licence for its Akida IP for implementation into space SoCs moves an important step in space-based AI deployments. 

BrainChip Holdings Limited (ASX: BRN)

On December 16, 2024, BrainChip Holdings Limited (ASX: BRN) entered into a licensing agreement with Frontgrade Gaisler, a key provider of radiation-hardened microprocessors for space applications. Under the agreement, Frontgrade will integrate BrainChip’s Akida 1.0 neuromorphic AI technology into its fault-tolerant, space-grade system-on-chip (SoC) solutions. This collaboration puts it among the best growth stocks to buy now, as it aims to boost AI acceleration across multiple generations of space hardware. It follows a prior evaluation of BrainChip’s Akida silicon devices, where the technology’s capabilities in real-time data stream processing, autonomy, and accuracy were recognized for their potential in space applications. The choice of Akida for space missions is based on its ultra-low power consumption, small size, and efficiency, which are critical factors in space technology, where mass, volume, and power constraints are paramount. This collaboration marks a milestone in AI deployment for space-based systems.

On December 10, 2024, BrainChip secured a US$1.8 million contract with the Air Force Research Laboratory (AFRL) under the SBIR program to develop neuromorphic radar signaling processing. This contract, focused on radar processing algorithms, follows successful demonstrations of BrainChip’s neuromorphic technology with a multinational aerospace and defense client. The new project will optimize algorithms using BrainChip’s proprietary Temporal Event Neural Network (TENN) framework, aiming to improve radar processing efficiency, particularly for micro-Doppler signature analysis, in mission-critical environments. This project will significantly enhance radar capabilities for defense, aerospace, and other high-demand industries.

In its quarterly report for the period ending September 30, 2024, BrainChip continued to focus on advancing customer engagements and strengthening its leadership team. The company successfully signed contracts with Frontgrade Gaisler and Airbus Defence and Space, totalling €190,000, to explore the use of Akida technology in space applications. Additionally, the company raised capital through an A$25 million equity placement, which will support the commercialization of its Akida 2.0 technology and new TENNs products. The company also appointed new key executives and strengthened its Scientific Advisory Board, ensuring expertise for long-term growth.

At the close of the September 2024 quarter, BrainChip reported US$25.6 million in cash, significantly up from US$10.9 million in the previous quarter. Although the company experienced net operating cash outflows of US$3.4 million, it remains optimistic about future growth due to strong customer interest and ongoing engagements. The company’s cash inflows from customers were US$0.04 million, while funds raised through placements and a share purchase plan supported the continued development of its technology. BrainChip’s robust cash position will enable the company to focus on the commercialization of Akida and TENNs products in the coming months.

Source: Company’s Report

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