June 27th, 2022 | 12:12 CEST
BrainChip and Palantir with strong rebound - How does BioNTech react?
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"[...] As a company dedicated to developing treatments for rare heart diseases, we see this as an opportune moment to contribute to the fight against heart disease and make meaningful strides in improving heart health worldwide. [...]" David Elsley, CEO, Cardiol Therapeutics Inc.
BrainChip Holdings - Classic setback offers opportunity
Unlike Netflix, Zoom or other tech industry giants, the developer of the Akida chip, Australia's BrainChip Holdings, is showing resilience. The share price performance of the emerging IP company, which is the world's first commercial manufacturer of neuromorphic AI chips, has been in the green since the beginning of the year. After starting the year at EUR 0.45, it went up to EUR 1.66 on the back of news related to a cooperation with car giant Mercedes. It was announced that Akida technology would make the "Hey, Mercedes" voice control in the EQXX five to ten times more efficient than conventional voice control. Since then, however, the share has corrected by almost 70% due to the weak market environment. However, a bottom is currently being formed in the EUR 0.60 area. In addition, MACD and RSI are close to a buy signal.
In the long term, BrainChip's novel AI chip could become the new standard in the semiconductor market. The advantages are that Akida is extremely low-power, high-performance, and promotes the growth of edge AI technology by using neuromorphic architecture, a type of artificial intelligence inspired by the biology of the human brain. BrainChip enables the universal use of efficient edge computing in real-world applications such as connected cars, consumer electronics and the Internet of Things. It is no coincidence that BrainChip has been accepted into chip giant ARM's partner program, enabling research into the next generation of AI solutions.
Another new partnership is with the inventor of the world's most advanced neuromorphic vision systems, Prophesee. Prophesee's technology is inspired by human vision. It uses a patented sensor design and AI algorithms that mimic the eye and brain to detect what was previously invisible with standard image-based technology. Prophesee's computer vision systems, like Akida, target segments such as autonomous vehicles, industrial automation, IoT, security and surveillance, augmented reality, and virtual reality.
"We have successfully ported Prophesee's neuromorphic-based camera sensor data to process inferences on Akida with impressive performance," said Anil Mankar, Co-Founder and CDO of BrainChip. "This combination of intelligent vision sensors with Akida's ability to process data with unprecedented efficiency, precision and power savings at the point of capture is a true advancement in AI and provides manufacturers with an immediately actionable solution."
Palantir with trend reversal
The stock of data analytics specialist Palantir has been actively working to bottom out in recent weeks. After losing around 88% and marking a new all-time low of USD 6.44 after the quarterly figures were announced, the stock is steadily climbing. Thus, the cracked downward gap at USD 9.48 could also be closed. With regard to the trend-following indicator MACD, a fresh buy signal was generated only on a weekly basis. In addition, the next important resistance is the downward trend formed since the high at currently USD 13.02.
After the month-long price disaster, analysts from Bank of America are now also speaking out with an initial assessment of the Palantir share. Mariana Perez Mora, an analyst at Bank of America, sees the US software company as a beneficiary of "rapidly growing demand" for artificial intelligence platforms in both commercial and government end markets. The dominant position held by the Palo Alto company should enable CEO Alex Karp's goal of generating at least 30% revenue growth while profits rise. The analyst's initial rating is "buy," with a price target set at USD 13.
In contrast, the news that the data analytics company is cooperating with Google went more or less under the radar but could become more and more important in the future. According to the Alphabet subsidiary, a long-running partnership will support the digital transformation "in important sectors of the economy". Palantir is making its Foundry platform available via Google Cloud. That should enable users to better analyze and merge their data. The idea that Palantir could become a future takeover candidate for Alphabet does not sound illogical.
New vaccine - A new wave of buying?
Despite a correction of around 75%, the market capitalization of the "One Product" company BioNTech is still a whopping EUR 32.57 billion. Although the Mainz-based company is researching cancer vaccines based on mRNA technology, a breakthrough is still years away. The vaccine developers are now achieving this with US cooperation partner Pfizer with regard to the Omicron variant that appeared at the end of last year. The companies announced on Saturday that two adapted vaccine candidates have triggered a strong immune response in the test phase. As a result, approval should follow soon, securing the vaccine subscription for the 2022 winter season. On Tuesday, the FDA will meet with experts to discuss the optimal composition of the fall vaccine.
"Based on these results, we believe we have developed two very good Omicron-adapted vaccine candidates that elicit a significantly higher immune response to Omicron than what we have seen before," Pfizer CEO Albert Bourla said. BioNTech CEO Ugur Sahin stated, "Omicron has continuously evolving subvariants that displace BA.1 and tend to have increased potential to evade the immune system." From a technical perspective, the stock could hold the critical support at EUR 131. In addition, the indicator situation could brighten up significantly, which means that trading gains are within the realm of possibility, at least in the short term.
The sharp correction offers interesting entry opportunities in technology stocks such as Palantir and BrainChip. The vaccine producer BioNTech could also see a trend reversal.
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