BRN Discussion Ongoing

[jtardif999]

Im just worried it may be some crapola Von Neuman rubbish "AI accelerator" like the ones maybe used in the M1 chip currenlty..... but who even knows what's in the M1 chip. Proprietary secret AI accelerator...
If they want to take the lead... it must be AKIDA...

So whose IP do Apple use for their chip architecture - ARM and who is ARMs favourite eco-system partner for AI acceleration atm? Not only would we potentially be associated with the Snapdragon DK in project Volterra but it would be illogical if Apple were to ignore using us via ARM in their latest chips for the Mac. AIMO.

 

[Foxdog]

So whose IP do Apple use for their chip architecture - ARM and who is ARMs favourite eco-system partner for AI acceleration atm? Not only would we potentially be associated with the Snapdragon DK in project Volterra but it would be illogical if Apple were to ignore using us via ARM in their latest chips for the Mac. AIMO.

That's big, really big. For fear of always being 5 years behind the competition these big players are going to have to have AKIDA inbedded in their systems - it's proven and there is nothing even close out there (not worth waiting for anyway) and AKIDA 2000 is expected to widen the gap further. I think our next ASX announcement will be the release of A2000, sometime this year. SP will respond upwards exponentially thereafter.

More explosion GIFs will be required

 

[Deleted member 118]

View attachment 13285

Good luck getting it at that looking at the buy and sell sides lol

 

[butcherano]

Hey Proga, while we will never find out the royalty value, in each issuance of AKIDA tech, I would lay down heavy coin, against it being 50 cents per use for Mercedes.

That might be the royalty for the Renesas use case, but that's only using up to two nodes and will be numbered in the (possibly) hundreds of millions, of issuances.

From the quick discussion on here, with Diogenese the other day, he thought that Mercedes may use 20 equivalent "full" AKIDAs of 80 nodes, I think it is? With all the extra backup systems included.

I "reckon" Brainchip would want around a $10 royalty per full "use" so maybe around $200 per car?
Which sounds reasonable..

It's all speculation and like I said, we will never know, but $35 a car?
We're the best show in Town and we're not running a charity

I agree with @Proga. Our revenue model is going to be similar to Arm. For some context, in the year ended March 2022 Arm made US 9.2c per chip sold with Arm IP. This includes licensing as well as royalties.

ARM Holdings revenues surge as it prepares for IPO

ARM Holdings plc (LSE:ARM) posted strong growth in revenues and profits as it prepared to float in New York or London. With a record 29.2bn chips shipped...

www.proactiveinvestors.co.uk

Recent broker reports have indicated royalties of 2% - 15% for Akida based on the chip sale value of US$25. This would be a sliding scale based on volume of units, so realistically we would be sitting in the 2% - 5% range when we’re talking about millions of units per year sold or US50c - US$1.25 per chip.

When you factor in a PE ratio of 50 to 100 times earnings on these numbers for our share price then we’re still talking massive numbers. 2m Merc EV’s per year with 70 chips @ US 50c/chip = US$70m/yr or approx. A$100m/yr. With 85% margin and a PE of 50 this is $2.50 per share. Do the same with 10 or more other customers and it really starts to add up.

But I think $10 per chip royalties is a tad optimistic. You’d be multiplying these numbers by 20 which I don’t think is realistic.

Happy to be proven wrong though….

Links to the broker reports mentioning royalties here….

https://static1.squarespace.com/static/5af533a312b13fb602fe7d7b/t/612313b3aae13c19f15e79bb/1629688762738/BrainChip+Holdings+research+initiation+report+-+20+08+2021.pdf

https://d1io3yog0oux5.cloudfront.net/_ac89279e7bea0d427bbd476dcd05708b/brainchipinc/db/262/1666/pdf/TMT+Initiation+Report.pdf

 

[SharesForBrekky]

This bit is particularly good.
"We're extremely delighted to support BrainChip's proliferation of their Akida technology," said Jan Jongboom, CTO at Edge Impulse.

Spot on mate. Looks like Jan has given us yet another beautiful word to describe the Akida technology in 'proliferation'.

That would definitely be up there with 'ubiquitous' and others we've come across along the way.

Thanks Jan (and SIDEvans)

 

[rayzor]

TOP 10 Biggest Semi conductor Companies

Revenues and Market Caps

10 Biggest Semiconductor Companies

Semiconductors are essential to operating technology like smartphones, computers, and artificial intelligence. These are the 10 biggest semiconductor companies worldwide.

www.investopedia.com

Please sir would you like to try the new Akida
Good for me good for you OK.

 

[supersonic001]

"Being the commercial leader in edge AI on-chip learning and neuromorphic AI IP availability, it is critical for BrainChip to establish our ecosystem with key partnerships and technology leaders such… | Edge Impulse (a Qualcomm company)

"Being the commercial leader in edge AI on-chip learning and neuromorphic AI IP availability, it is critical for BrainChip to establish our ecosystem with key partnerships and technology leaders such as Edge Impulse. Working together, both companies are creating an advantage for the ML...

www.linkedin.com

 

[buena suerte :-)]

Brain chip is going to kick butt

Is the turnaround coming for chip stocks? Intel, Nvidia, BrainChip, Aixtron and AMD

Last year, semiconductors were declared the new gold due to blown-up supply chains and the resulting shortages. After the recent boom and the build-up of overcapacity, the market could now grind to a halt by 2023 at the latest. High inflation, a global economic downturn and a possible recession...

news.financial

August 3rd, 2022 | 12:52 CEST

IS THE TURNAROUND COMING FOR CHIP STOCKS? INTEL, NVIDIA, BRAINCHIP, AIXTRON AND AMD​

• TECHNOLOGY
• AI

Photo credits: pixabay.com
Last year, semiconductors were declared the new gold due to blown-up supply chains and the resulting shortages. After the recent boom and the build-up of overcapacity, the market could now grind to a halt by 2023 at the latest. High inflation, a global economic downturn and a possible recession in the industry could do the rest. Last week, Intel was already in the red with a slump in sales. In contrast, other companies from the chip sector could report positive surprises.
time to read: 4 minutes | Author: Stefan Feulner
ISIN: INTEL CORP. DL-_001 | US4581401001 , NVIDIA CORP. DL-_001 | US67066G1040 , BRAINCHIP HOLDINGS LTD | AU000000BRN8 , AIXTRON SE NA O.N. | DE000A0WMPJ6

TABLE OF CONTENTS:​

• INTEL, AMD, INFINEON, NVIDIA - CATASTROPHIC FIGURES AHEAD
• BRAINCHIP - ENTRY INTO THE MASS MARKET
• AIXTRON - ANALYSTS DIVIDED

---

Full interview

INTEL, AMD, INFINEON, NVIDIA - CATASTROPHIC FIGURES AHEAD​

Horror figures, disaster....! The media did not shy away from superlatives when announcing the results for the second quarter. Intel shocked analysts and investors alike, who subsequently acknowledged this with a share price drop of over 10%. The one-time market leader saw its revenue drop 22% to USD 15.32 billion, alienating a crowd of analysts still expecting USD 18.62 billion.
Adjusted earnings per share were USD 0.29, compared with the expected USD 0.70. The net result was a loss of USD 454 million; last year Intel still generated a profit of almost USD 5 billion. The gross margin fell from 50.4% in Q1 2022 to just 36.5% in Q2 2022.
"The sudden and rapid decline in economic activity was the primary reason for the shortfall, but Q2 also reflected our own execution issues in areas such as product design and ramping up AXG (Accelerated Computing Systems and Graphics Group) offerings," CEO Gelsinger said, explaining the downturn.
The reins have been tightened once again for the full year, and forecasts have been lowered. Management led by CEO Patrick Gelsinger, the world's highest-paid executive at USD 179.00 million last year, expects adjusted earnings per share of USD 2.30. The original estimate was USD 3.60 per share. The revenue target was restated in a range of USD 65 billion to USD 68 billion. Previously, Intel wanted to generate up to USD 76 billion.
It is well known that the problems are homemade, and Intel has been working on restructuring for a long time. Thus, this strong revenue downturn should not be completely transferable to the entire industry. Investors should gain new insights when the competition presents its figures for the second quarter. Advanced Micro Devices delivered yesterday after the close of the stock market, while the German player Infineon plans to surprise positively today, Wednesday. Nvidia, on the other hand, is not expected to attract investors' attention until August 24.

BRAINCHIP - ENTRY INTO THE MASS MARKET​

The next-generation chip is currently being developed by the Australian IP company BrainChip. The novel technology of the Akida chip could see a market shift in the near future that could shake up the incumbents. Another possibility would be the acquisition of the revolutionary technology by a global player, which would likely make BrainChip an attractive takeover candidate. It is no coincidence that the Akida chip was recently accepted into the AI Partner Program by ARM. Mercedes-Benz also relies on the novel technology for its EQXX.
The USP of the innovative processor lies in the fact that it is very low-power, high-performance and promotes the growth of edge AI technology through the use of neuromorphic architecture, a type of artificial intelligence inspired by the biology of the human brain. Experts see it as significantly more efficient than traditional chips, as it can learn independently with each process. Application areas, therefore, revolve around future topics such as autonomous driving, robotics and the Internet of Things.
"Unlocking the future of AI" is what it says on the Company's homepage, which has already opened the door wide to the mass market. After a strong correction and a one-year low at AUD 0.76, BrainChip's stock has recovered sharply and stabilized above the AUD 1.00 level. Akida technology is also in high demand among major players. If further partnerships are announced, the next ramp-up should start. The all-time high was AUD 2.34 at the beginning of the year.

AIXTRON - ANALYSTS DIVIDED​

The Herzogenrath-based Company already announced its figures for the second quarter at the end of July. Aixtron benefited from high demand from almost all end markets and recorded the highest order intake since 2011. It amounted to approximately EUR 283 million in the second quarter, 7% higher than a year earlier. At the half-year mark on June 30, 2022, a total of EUR 314 million was on the books. Sales grew by around 51% to EUR 102.5 million, and the gross margin was 37%, as in the same period last year. EBIT tripled to EUR 17.2 million. As a result, profits doubled to EUR 17.3 million.
The MDAX member expects order intake to be between EUR 520 million and EUR 580 million for the full year. Sales should be between EUR 450 million and EUR 500 million, with a gross margin of around 41%.
Various analyst houses expressed different opinions here. Private bank Berenberg raised its price target for Aixtron from EUR 26 to EUR 28 after quarterly figures and left its rating at "buy". In contrast, DZ Bank is significantly more pessimistic and downgraded the stock from "buy" to "sell". The price target was also lowered from EUR 27 to currently EUR 22.

---

After the strong correction in chip stocks, the second quarter number season is now upon us. The former market leader, Intel, disappointedbut has internal restructuring problems. On the other hand, AMD, Infineon and Nvidia could see a turnaround. BrainChip is on the verge of a breakthrough in the mass market and has high growth potential in the long term.

"Brain chip is going to kick butt"

Some excellent posts TG

 

[Fastback6666]

It’s funny how some of these stories pop into your news feed when you have been talking about them!

Intel is working on a new type of processor you've never heard of​

Intel is working on a new type of processor you've never heard of

Meet the versatile processing unit (VPU)

www.techradar.com

Intel clearly have missed the boat on time and now the Brainchip IP Patent moat has probably become too wide to get across.

Whatever they do it will have to be primarily a whole new spec of tech processing but also be cheaper, faster, smarter than the Akida 2000 or 3000 as that is what will be out when they put something out.

Brainchip have the benefit also of building with and iterating with so many tech partners right now to ensure what they are building is what the partner and end consumer wants.

It is very hard to play catch up in the IT world.

 

[Potato]

 

[Deleted member 118]

View attachment 13287

@Izzzzzzzzzzy what’s an extra .10c in a few years time lol

 

[charmander]

If I were younger and more hip I'd sa..

Nah screw it I'll just say it

The last couple days here being a Brainchip holder have been a vibe

Well done everyone!

 

[Proga]

It is clearly the next logical step.

The partnership between BrainChip and Prophesee will give the market more commercially available neuromorphic vision systems for potential applications in autonomous vehicular systems, industrial automation, IoT, security, surveillance, retail automation, and AR/VR.

“By combining Prophesee’s Metavision solution with Akida-based IP, we are better able to deliver a complete high-performance and low-power solution to OEMs looking to leverage edge-based visual technologies as part of their product offerings,” said Luca Verre, CEO and co-founder of Prophesee.”

Prophesee + Sony + Brainchip
Will be the world's gold standard in Event Based Neuromorphic Vision Technology
The 3 are world leaders in their fields of expertise and combined they are a match made in heaven !

Taproot,

Does Prophesee's make the whole camera or just the sensor in it?

 

[Proga]

I agree with @Proga. Our revenue model is going to be similar to Arm. For some context, in the year ended March 2022 Arm made US 9.2c per chip sold with Arm IP. This includes licensing as well as royalties.

ARM Holdings revenues surge as it prepares for IPO

ARM Holdings plc (LSE:ARM) posted strong growth in revenues and profits as it prepared to float in New York or London. With a record 29.2bn chips shipped...

www.proactiveinvestors.co.uk

Recent broker reports have indicated royalties of 2% - 15% for Akida based on the chip sale value of US$25. This would be a sliding scale based on volume of units, so realistically we would be sitting in the 2% - 5% range when we’re talking about millions of units per year sold or US50c - US$1.25 per chip.

When you factor in a PE ratio of 50 to 100 times earnings on these numbers for our share price then we’re still talking massive numbers. 2m Merc EV’s per year with 70 chips @ US 50c/chip = US$70m/yr or approx. A$100m/yr. With 85% margin and a PE of 50 this is $2.50 per share. Do the same with 10 or more other customers and it really starts to add up.

But I think $10 per chip royalties is a tad optimistic. You’d be multiplying these numbers by 20 which I don’t think is realistic.

Happy to be proven wrong though….

Links to the broker reports mentioning royalties here….

https://static1.squarespace.com/static/5af533a312b13fb602fe7d7b/t/612313b3aae13c19f15e79bb/1629688762738/BrainChip+Holdings+research+initiation+report+-+20+08+2021.pdf

https://d1io3yog0oux5.cloudfront.net/_ac89279e7bea0d427bbd476dcd05708b/brainchipinc/db/262/1666/pdf/TMT+Initiation+Report.pdf

In one of Sean's first interviews, must have been a podcast because I tried looking for it on YouTube but can't find, he spoke about the revenue model being IP license and royalties. He said the royalties would be on a sliding scale depending on how many applications were produced using our IP. He spoke in cents not dollars. Even mentioned 10c I think which frightened me. In The Wall Street Resource interview (13.50 minute mark) he said the board sales or the system sales was just to get the word out there and he doesn't expect much revenue.

I haven't heard Sean speak actual dollars and cents again so he might have been a little excited being one of his first interviews as CEO and let it slip.



@DingoBorat sorry mate I tried adding in your reply as well but didn't work apparently.

 

[Luppo71]

Morning all,
not sure if been seen but take a look from 1 hour 20 minutes about ARM is enabling intelligent devices with neural network model.
Good watch
Any thoughts.

 

[Potato]

Who the hell is now selling 250 at $1.055...bastards!! stop it and stop it now haha

 

[butcherano]

In one of Sean's first interviews, must have been a podcast because I tried looking for it on YouTube but can't find, he spoke about the revenue model being IP license and royalties. He said the royalties would be on a sliding scale depending on how many applications were produced using our IP. He spoke in cents not dollars. Even mentioned 10c I think which frightened me. In The Wall Street Resource interview (13.50 minute mark) he said the board sales or the system sales was just to get the word out there and he doesn't expect much revenue.

I haven't heard Sean speak actual dollars and cents again so he might have been a little excited being one of his first interviews as CEO and let it slip.



@DingoBorat sorry mate I tried adding in your reply as well but didn't work apparently.

Cheers @Proga. I don’t actually ever recall the company stating the royalties in $’s (or c’s) per chip. Can’t bring myself to believe that it would be as low as 10c though….unless it was per node maybe?!…and even that seems really low….

 

[jtardif999]

I agree with @Proga. Our revenue model is going to be similar to Arm. For some context, in the year ended March 2022 Arm made US 9.2c per chip sold with Arm IP. This includes licensing as well as royalties.

ARM Holdings revenues surge as it prepares for IPO

ARM Holdings plc (LSE:ARM) posted strong growth in revenues and profits as it prepared to float in New York or London. With a record 29.2bn chips shipped...

www.proactiveinvestors.co.uk

Recent broker reports have indicated royalties of 2% - 15% for Akida based on the chip sale value of US$25. This would be a sliding scale based on volume of units, so realistically we would be sitting in the 2% - 5% range when we’re talking about millions of units per year sold or US50c - US$1.25 per chip.

When you factor in a PE ratio of 50 to 100 times earnings on these numbers for our share price then we’re still talking massive numbers. 2m Merc EV’s per year with 70 chips @ US 50c/chip = US$70m/yr or approx. A$100m/yr. With 85% margin and a PE of 50 this is $2.50 per share. Do the same with 10 or more other customers and it really starts to add up.

But I think $10 per chip royalties is a tad optimistic. You’d be multiplying these numbers by 20 which I don’t think is realistic.

Happy to be proven wrong though….

Links to the broker reports mentioning royalties here….

https://static1.squarespace.com/static/5af533a312b13fb602fe7d7b/t/612313b3aae13c19f15e79bb/1629688762738/BrainChip+Holdings+research+initiation+report+-+20+08+2021.pdf

https://d1io3yog0oux5.cloudfront.net/_ac89279e7bea0d427bbd476dcd05708b/brainchipinc/db/262/1666/pdf/TMT+Initiation+Report.pdf

I agree, but also consider that with the release of Akida2000 we go to a 5 year lead, and as we become a dominant brand we will be able to charge a premium for the IP. AIMO.

 

[Potato]

Hoping we can push to $1.20 by end of business today.
Might be a long shot but fingers crossed

 

[Neuromorphia]

In one of Sean's first interviews, must have been a podcast because I tried looking for it on YouTube but can't find, he spoke about the revenue model being IP license and royalties. He said the royalties would be on a sliding scale depending on how many applications were produced using our IP. He spoke in cents not dollars. Even mentioned 10c I think which frightened me. In The Wall Street Resource interview (13.50 minute mark) he said the board sales or the system sales was just to get the word out there and he doesn't expect much revenue.

I haven't heard Sean speak actual dollars and cents again so he might have been a little excited being one of his first interviews as CEO and let it slip.



@DingoBorat sorry mate I tried adding in your reply as well but didn't work apparently.

this could be the interview you speak of...Interview with Brainchip (ASX:BRN) CEO Sean Hehir

https://thestockexchange.com.au/threads/brn-discussion-2022.1/post-73288

Interview with Brainchip (ASX:BRN) CEO Sean Hehir

BrainChip (ASX:BRN) CEO, Sean Hehir, spoke to us about BRN's partnership with ARM and the many opportunities BRN is seeing in the market.

stocksdownunder.com

Marc: Right. Okay. Last question and it’s probably the simplest one for you. Looking at deals with, you know, likes of MegaChips, just for our viewers, can you just briefly explain what revenue looks like and at what stage that comes in?

Sean: Sure, sure. At its simplest level, our revenue model is very much a licensing or an IP model. So, when you sell to a MegaChips or others, they pay, you know, a significant amount of money for that license for a period of time. And they either have a single design or multi-design depending on what they decide to buy. But, you know, it’s a significant purchase for those companies to buy. Then you go through a period…when they produce their products, you get royalties. But I like to describe how that royalty stream looks like. Obviously, there’s a delay. Somebody buys a license. Then they’ve gotta develop their products so maybe a year, two, maybe even three sometimes before the products come.

But when their products start hitting the market, we collect a royalty on each individual product. And so, our modeling, the way we do it is it’s a factor, not a percentage. So, if somebody paid, you know…let’s just say they paid $1 for a license. Obviously, it’s a lot more. We’d expect $3 or $4 or $5 in royalties, not 50 cents. So that’s a way to look at it if you’re trying to model our revenue. As licensees come on more and more, there’ll be a delay but then, quite frankly, the royalties with no cogs come through, and that’s the beauty of this model.