The current interest rate decision is casting its shadow ahead, and the horrendously rising inflation rates are unsettling market participants. In the fight against inflation, the US Federal Reserve will likely shrink its balance sheet further and herald more aggressive interest rate steps. However, there is then a risk of significantly weakening the economy. That would seriously worsen the macroeconomic picture and significantly increase the risk of the US sliding into recession. The biggest losers from a major interest rate hike will likely remain interest rate sensitive growth stocks. However, such a scenario is already priced in for many stocks.

As the global economy becomes more correlated to the internet of things, artificial intelligence (AI) stocks are becoming increasingly prominent, moving itself further to the front of tech stocks in 2022. One particular stock which has gained significant traction in the past few months, in particular, is BrainChip Holdings (ASX:BRN), which has won over global support as a result of its AI, inspired by the human brain. What is BrainChip and why is it creating a buzz? Recently, BrainChip Holdings made waves in the tech space when it was showcased in its latest collaboration with Mercedes Benz, which will use a microchip developed by the company in its latest electric vehicle (EV) – The Vision EQXX. The new EV, slated for release later this year, claims to be able to travel 1000km on just one charge though its uses of BrainChip's neural processors.

Growth strategy and the use of innovative technologies are often decisive for the continued existence of a company. Not only in large corporations, as seen in the example of SAP with the expansion of the cloud business, but the conventional business areas are also hardly sufficient anymore. A generation change is also taking place in the production of semiconductors. The market for chips for artificial intelligence is currently experiencing a real hype, which is likely to accelerate in the coming years. Smaller companies, in particular, have a head start in terms of know-how.

The artificial intelligence market is expected to grow to USD $16.06 Billion by 2022. The McKinsey Global Institute says, "Recent advances in machine learning can be used to solve a tremendous variety of problems--and deep learning is pushing the boundaries even further." One such company set to take advantage of this emerging market is ASX-listed BrainChip Holdings (ASX:BRN) which is headquartered in Aliso Viejo, California. They have developed a Spiking Neuron Adaptive Processor (SNAP) that essentially mimics the human brain: autonomous and unsupervised learning, evolves and associates information. According to CEO Louis DiNardo, SNAP has many applications, which includes surveillance, casino operations, and even investing.