- Retail investors drove a massive surge in shares of Indian chipmaker RRP Semiconductor, despite the company’s deep losses and limited financial disclosures.
- Regulatory authorities intervened amid the highly speculative rally, restricting trading and investigating trading activities.
- Social media speculation and a small free float contributed to a bubble-like rise, with the stock price up more than 55,000% in 20 months.
- The case highlights how Artificial Intelligence hype can trigger extreme ‘meme stock’ behavior without solid earnings fundamentals.
Shares of RRP Semiconductor, a chipmaking firm based in Thane, India, soared over 6,000% year-to-date and 55,000% over the past 20 months, even as the company posted substantial losses. The rally, heavily fueled by retail trading and social media buzz, drew intense scrutiny from Indian regulators. RRP Semiconductor operates an Outsourced Semiconductor Assembly & Test (OSAT) facility in Maharashtra, specializing in chip packaging, fabrication, and testing.
Despite its dramatic rise, the company’s financial filings revealed negative revenue of about $8.2 million for the quarter ended September 30, 2025, and its adjusted losses widened sharply from almost zero to approximately $63,200 in the same period. Transitioning from an investment trading firm founded in 1980 to entering the semiconductor industry in May 2025, RRP Semiconductor faced market skepticism over its transparency and financial health.
Rumors on social media claimed former cricket star Sachin Tendulkar had invested in the company, causing the stock to surge. RRP Semiconductor later clarified in an October filing that Tendulkar did not own any shares and that the firm had not acquired government land, as previously speculated.
The explosive price movement included 149 consecutive days when the stock hit its maximum allowable daily gain, a phenomenon known as a “limit-up” session. According to data, these gains led to a market capitalization peak of approximately $1.7 billion, making it one of the largest global increases among companies valued above $1 billion.
The founder, Rajendra Chodankar, along with associates, owns 98% of the company, resulting in a very low share float. Amid warnings from both stock exchanges and the firm itself about potential risks, the Indian Securities Exchange Board (SEBI) began probing the legitimacy of the share surge, as reported. Trading in the stock is currently limited to once a week.
The episode demonstrates how an AI-related business pivot, limited stock availability, and widespread online excitement can combine to create extraordinary — and risky — volatility, even when a company shows no clear path to profitability.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- Crypto Hacks Hit $3.4B in 2025, Bybit Breach Leads Losses
- Trump Unveils $20K Tax Savings & Crypto Upgrades for 2026
- Bitcoin Faces Muted Santa Rally as Analysts Expect Range-Bound Trade
- India Approves Coinbase’s Stake Acquisition in CoinDCX Crypto Exchange
- Kimsuky Hacks Android via QR Code with New DocSwap Malware
