BRN Discussion Ongoing

[manny100]

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https://www.linkedin.com/in/kevin-d-johnson-42170b/

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Very interesting Frangipani, appears IBM may be looking at Hybrid with AKIDA running with their traditional AI.
North Pole appears out of favour.
Huge plus for Brainchip that IBM are having a look..

 

[SharesForBrekky]

Very interesting Frangipani, appears IBM may be looking at Hybrid with AKIDA running with their traditional AI.
North Pole appears out of favour.
Huge plus for Brainchip that IBM are having a look..

Wondering if IBMs sense of urgency is because Intel are making their move.

 

[Space Cadet]

So we now have confirmed orders from Parsons and Nex Novus totaling 11,200 chips.

Based on the previous announcement below, Akida 1500 pricing ranges from roughly $4 to $50 per chip, depending on volume.

What do people consider a “small” versus “large” volume order in this context, and where do you think a 10,00 unit order (Parsons) and a 1,200 unit order (Nex Novus) realistically sit on that pricing spectrum?



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Hi Bravo,

Yes there isn't much info on volume's and where they sit in the range. The following quote in the 4C to me says the 1200 is a minor order, so to me that puts it closer to the $50 mark. At a guess 40 - $50 mark. Just a guess.

On 12 December 2025, BrainChip received an initial order for 1,200 AKD1500 chips from Nex Novus for use in its Neuromorphyx™ “Neuro Blocks” product. The AKD1500 will accelerate an MCU supporting neuromorphic evaluation of multi-sensor data. While the order size is minor, it represents further market demand for the AKD1500.

Not much in the way of revenue but hopefully that can change to mass production.

SC

 

[perceptron]

Hi Bravo,

Yes there isn't much info on volume's and where they sit in the range. The following quote in the 4C to me says the 1200 is a minor order, so to me that puts it closer to the $50 mark. At a guess 40 - $50 mark. Just a guess.

On 12 December 2025, BrainChip received an initial order for 1,200 AKD1500 chips from Nex Novus for use in its Neuromorphyx™ “Neuro Blocks” product. The AKD1500 will accelerate an MCU supporting neuromorphic evaluation of multi-sensor data. While the order size is minor, it represents further market demand for the AKD1500.

Not much in the way of revenue but hopefully that can change to mass production.

SC

Hi Space Cadet,
So you guess the chips will cost around the $50 mark + the variable costs for the 1200 chip order? I am thinking the same. What is hard to surmise is the final price to customer. Leave that up to the sales personnel and current market conditions.

 

[Frangipani]

BrainChip (ASX:BRN) falls 6% Despite Major 10,000-Chip Defence Order- Is It a Buy?

BrainChip (ASX:BRN) shares hit 52-week lows despite an initial 10,000-chip order from Parsons and the AKD1500 production ramp. Is the market missing an edge AI buying opportunity or is the US$4.3M cash burn a red flag?

stocksdownunder.com

BrainChip (ASX:BRN) Falls 6% Despite Defence Deals and AKD1500 Production Ramp- Is This a Buying Opportunity?​

Ujjwal Maheshwari, January 30, 2026

BrainChip Slips Despite Defence Orders and AKD1500 Ramp​

BrainChip Holdings (ASX: BRN) dropped around 6% on Thursday despite releasing what appears to be its strongest quarterly update in years. The neuromorphic AI chip maker reported improved cash flows, a strengthened balance sheet, and meaningful progress on defence contracts, yet the market pushed shares toward 52-week lows near 16 cents.

For investors watching the edge AI space, this disconnect raises a critical question: Is the market missing something, or does the selloff reflect legitimate concerns about a company still burning cash with minimal revenue? We believe the answer lies somewhere in between.

BrainChip’s Defence Push Gains Traction With Parsons Partnership​

The most significant development from the December quarter was the advancement of a multi-year partnership with Blue Ridge Envisioneering, a subsidiary of NYSE-listed Parsons Corporation. This deal includes an initial order of 10,000 chips over the agreement term and establishes a supply framework for high-volume defence deployments.

Parsons is a Fortune 500 defence contractor with deep ties to the US military and intelligence agencies. Their commitment to BrainChip’s technology validates the Akida platform’s relevance in defence applications where low power and edge processing are essential.

The company also secured an order from Nex Novus for medical sensing applications. However, these early wins remain small relative to BrainChip’s A$350 million market capitalisation. Early commercial validation is encouraging, but the path to meaningful revenue remains in its infancy.

AKD1500 Production Begins- What This Means for Revenue​

Perhaps the most important milestone this quarter was the commencement of volume production for the AKD1500 edge AI co-processor. This chip delivers 800 giga operations per second while consuming under 300 milliwatts, a performance that positions it well for battery-powered devices and heat-constrained environments.

The AKD1500 integrates with x86, ARM, and RISC-V systems, providing compatibility across a wide range of applications. With volume production now underway, BrainChip expects to commence shipping production-grade parts in Q3 2026, marking a critical transition from R&D to commercial scaling.

In our view, this transition from development to manufacturing separates genuine commercial potential from perpetual R&D spending. If BrainChip converts its design wins into recurring chip sales over the next 12 to 18 months, the investment case strengthens considerably. Until that revenue materialises, the stock remains speculative.

The Investor’s Takeaway​

The bull case centres on defence tailwinds and BrainChip’s improved financial position. The company bolstered liquidity to US$31.7 million following an A$35 million placement, providing runway for commercialisation. Operating outflows narrowed to US$4.3 million for the quarter. With 61 patents protecting its neuromorphic technology, BrainChip holds defensible IP in a rapidly growing market.

The bear case remains equally compelling. Customer cash inflows totalled just US$0.4 million. The recent raise at A$0.175 represented a 10.3% discount, and shareholders have absorbed significant dilution. Competition from Intel, Qualcomm, and emerging rivals makes success far from guaranteed.

Our take: BrainChip is speculative, suited only for high-risk investors with a three-to-five-year horizon. At current levels, the stock may be pricing in execution risk that could prove overdone if the AKD1500 ramp delivers. Conservative investors should wait for meaningful revenue traction. The Q3 2026 production milestone is the key catalyst to watch.

 

[Frangipani]

BrainChip (ASX:BRN) falls 6% Despite Major 10,000-Chip Defence Order- Is It a Buy?

BrainChip (ASX:BRN) shares hit 52-week lows despite an initial 10,000-chip order from Parsons and the AKD1500 production ramp. Is the market missing an edge AI buying opportunity or is the US$4.3M cash burn a red flag?

stocksdownunder.com

BrainChip (ASX:BRN) Falls 6% Despite Defence Deals and AKD1500 Production Ramp- Is This a Buying Opportunity?​

Ujjwal Maheshwari, January 30, 2026

BrainChip Slips Despite Defence Orders and AKD1500 Ramp​

BrainChip Holdings (ASX: BRN) dropped around 6% on Thursday despite releasing what appears to be its strongest quarterly update in years. The neuromorphic AI chip maker reported improved cash flows, a strengthened balance sheet, and meaningful progress on defence contracts, yet the market pushed shares toward 52-week lows near 16 cents.

For investors watching the edge AI space, this disconnect raises a critical question: Is the market missing something, or does the selloff reflect legitimate concerns about a company still burning cash with minimal revenue? We believe the answer lies somewhere in between.

BrainChip’s Defence Push Gains Traction With Parsons Partnership​

The most significant development from the December quarter was the advancement of a multi-year partnership with Blue Ridge Envisioneering, a subsidiary of NYSE-listed Parsons Corporation. This deal includes an initial order of 10,000 chips over the agreement term and establishes a supply framework for high-volume defence deployments.

Parsons is a Fortune 500 defence contractor with deep ties to the US military and intelligence agencies. Their commitment to BrainChip’s technology validates the Akida platform’s relevance in defence applications where low power and edge processing are essential.

The company also secured an order from Nex Novus for medical sensing applications. However, these early wins remain small relative to BrainChip’s A$350 million market capitalisation. Early commercial validation is encouraging, but the path to meaningful revenue remains in its infancy.

AKD1500 Production Begins- What This Means for Revenue​

Perhaps the most important milestone this quarter was the commencement of volume production for the AKD1500 edge AI co-processor. This chip delivers 800 giga operations per second while consuming under 300 milliwatts, a performance that positions it well for battery-powered devices and heat-constrained environments.

The AKD1500 integrates with x86, ARM, and RISC-V systems, providing compatibility across a wide range of applications. With volume production now underway, BrainChip expects to commence shipping production-grade parts in Q3 2026, marking a critical transition from R&D to commercial scaling.

In our view, this transition from development to manufacturing separates genuine commercial potential from perpetual R&D spending. If BrainChip converts its design wins into recurring chip sales over the next 12 to 18 months, the investment case strengthens considerably. Until that revenue materialises, the stock remains speculative.

The Investor’s Takeaway​

The bull case centres on defence tailwinds and BrainChip’s improved financial position. The company bolstered liquidity to US$31.7 million following an A$35 million placement, providing runway for commercialisation. Operating outflows narrowed to US$4.3 million for the quarter. With 61 patents protecting its neuromorphic technology, BrainChip holds defensible IP in a rapidly growing market.

The bear case remains equally compelling. Customer cash inflows totalled just US$0.4 million. The recent raise at A$0.175 represented a 10.3% discount, and shareholders have absorbed significant dilution. Competition from Intel, Qualcomm, and emerging rivals makes success far from guaranteed.

Our take: BrainChip is speculative, suited only for high-risk investors with a three-to-five-year horizon. At current levels, the stock may be pricing in execution risk that could prove overdone if the AKD1500 ramp delivers. Conservative investors should wait for meaningful revenue traction. The Q3 2026 production milestone is the key catalyst to watch.

“The company also secured an order from Nex Novus for medical sensing applications.”

This piece of information was not provided in the 4C.
“Neuro Blocks” may sound like something to do with neurology, but it could also just refer to neural networks in general.

https://company-announcements.afr.com/asx/brn/910c1977-fc9a-11f0-95c5-72fbabd2b4c8.pdf

“On 12 December 2025, BrainChip received an initial order for 1,200 AKD1500 chips from Nex Novus for use in its NeuromorphyxTM “Neuro Blocks” product. The AKD1500 will accelerate an MCU supporting neuromorphic evaluation of multi-sensor data. While the order size is minor, it represents further market demand for the AKD1500.”

And I don’t see any reference to medical sensing on the Nex Novus / Neuromorphyx website either?

Nex Novus | Neuromorphic Computing

Spiking Neural Networks (SNN) for Event-based Vision, Audio and Radar. Expert applications in Security Surveillance, IoT, and Robotics.

www.nex-novus.com

Neuromorphyx

Advanced Neural Computing Systems

neuromorphyx.com

 

[Space Cadet]

Hi Bravo,

Here is my answer to the question that I thought you were asking. From other responses, I'm barking up the wrong tree.

Because the table has a cost per chip and a price per chip, I assume the 'cost' is what Brainchip pay for it and the 'price' is what they will sell it for. (I think the word 'variable' is because Brainchip could vary that by placing a bigger or smaller order. The $2.94 is for the order they are placing. Assume, assume, assume.)

So I would GUESS that if you were to buy < 10 chips, you would pay $50 each. 11-50 $45 each, etc etc on some scale.

To only pay $4, I would hope the order is 1 million plus. My absolute guesstimate is that Nex Novus would pay $30/chip and Parsons would pay $10/chip.

$136 000 in revenue. For the life of me, I just can't understand why the share price hasn't hit $1.

Seriously though, why would they mention the bit about volume with Parsons if the 100 000 wasn't just a toe dip with serious volumes envisioned. Once they prove to themselves that AKD1500 works every time, the volume will follow. 1 million time $4 is harder to poke fun at.

Additionally, my $136k guesstimate is less than $9m, so Sean, who surely hit his target, has some more dollars up his sleeve.

Okay, I will be charmed to receive some cracking feedback on my extremely insightful post.

H.

Imo the price per chip isn't the real game. Royalties are. Depends what products they go into and what cut we get. We only have one so far to go on. 15% for first product and option of 10% for second product. Now if we say we get volume production and 10% royalty, the real money is in the royalties. Depending on what people paid for their shares it may take 12 - 24 months to break even, (barring a huge announcement). The real money may take to 2030, so that is my time frame. Only an opinion. Happy to hear objective opinions.

SC

 

[poor guy]

Imo the price per chip isn't the real game. Royalties are. Depends what products they go into and what cut we get. We only have one so far to go on. 15% for first product and option of 10% for second product. Now if we say we get volume production and 10% royalty, the real money is in the royalties. Depending on what people paid for their shares it may take 12 - 24 months to break even, (barring a huge announcement). The real money may take to 2030, so that is my time frame. Only an opinion. Happy to hear objective opinions.

SC