As we head into the holiday season, I would like to wish everyone a Merry Christmas and a Happy New Year!
In the past, I had stated that I would wait until 2025 and reassess my investment in BrainChip to see where things stand. On paper, I had a considerable loss, so throughout the year, I averaged down as much as I could until I reached the maximum number of shares I had set as my goal. After that goal was met, I began investing my retirement savings into other aggressive growth funds to attempt to balance things out.
While I still hold BrainChip at a loss on paper, I don't plan on realizing that loss any time soon, given the amount of news that has surfaced. That being said, I'll proffer my opinion on where I see things heading as we move into 2026.
Generative AI is a huge business right now, and while very profitable for companies, I think I see a bubble forming. In my experience, it saves a considerable amount of time (I use it more in my everyday work); however, it's not a panacea. It can definitely make those using it more productive, while opening up other avenues of development opportunities for data analysis, training models, and creating AI agents that work in tandem to carry out more complex tasks.
While TENNs (which I understand will work with first-generation Akida, but run optimally on Akida's second and third generation designs) can provide performant generative AI capabilities, they do so with much smaller and more specific trained models. Generative AI is a subset of AI in general that focuses on generating new content, whether it be text or images. However, AI inference can make decisions, predictions, classifications, recommendations, and complex real-time analysis, which are included in Akida's capabilities.
To me, BrainChip is at least addressing the hype train regarding Generative AI. From the other uses I've seen partners apply Akida, such as Raytheon and Onsor, it is obvious that their use of Akida is one of the other aforementioned inferencing capabilities, for which it performs extremely well.
BrainChip decided to tape out the AKD1500 for volume production. I think this is a smart move, as there is market demand for silicon that uses the Akida IP. Smaller players in the space that want neuromorphic technology to achieve their vision will now have access. Trying to cater only its IP to larger suppliers in the space was probably a harder sell, as I'm sure they want to see it in action before such a perceived risky commitment. People may view this pivot as a negative; however, I believe it will be necessary to help establish the brand quickly and ensure survival amongst competitors that provide off-the-shelf silicon to companies incorporating AI into their hardware. These companies will reap the benefits of neuromorphic inferencing, which may be disruptive to those competitors not using a neuromorphic design.
I certainly approve of their pivotal decision and the inroads being made in the military, space, and medical applications, right where they need to be. Once Akida has proven itself in these fields concerning efficiency, power, speed, and latency, the IP deals may eventually follow for hardware designs that are more efficient and cost-effective for large-scale production. More than likely, Akida will be used in chiplets that become part of a larger SoC design in the future.
I still believe in the technology, and while I can't say what 2026 will bring to the table, it will hopefully be more announcements around the AKD1500 large-scale tape-out and production, as well as success stories from partners who are wrapping up their projects using the technology. Some of these engagements, years in the making, are coming to fruition. I am looking forward to seeing what new applications emerge, outside of the realm of Generative AI, that we haven't yet imagined. Let's hope that by the second quarter, it will be the year of price-moving announcements, hopefully bringing it a gradual rise to where it should rightfully be. I don't want to see another "Mercedes" boom in the share price, which did the long-term investor no favors and made several people uncomfortable with their choice after the CES announcement hype subsided. Short-term traders made out like bandits; non-traders like me, seeking a viable long-term investment in a technology I believe in, missed an opportunity to sell and buy back in later, increasing holdings substantially. As they say, though, hindsight is 20/20.
For those like me who are still holding onto BrainChip, good luck to you all! For those who are taking a loss and moving on, I certainly empathize with the frustration of owning this stock. However, I still believe in the technology, and I am looking past the Generative AI hype on which BrainChip is cleverly marketing, but just one of the many applications of Akida's true capabilities.