World-Beating 55,000% Surge in India AI Stock Fuels Bubble Fears (thehindubusinessline.com)
- Reference: 0180416913
- News link: https://tech.slashdot.org/story/25/12/18/1537226/world-beating-55000-surge-in-india-ai-stock-fuels-bubble-fears
- Source link: https://www.thehindubusinessline.com/markets/world-beating-55000-surge-in-india-ai-stock-fuels-bubble-fears/article70409977.ece
> Little-known until recently even within its home market of India, RRP Semiconductor Ltd. became a social-media obsession as its shares [1]surged more than 55,000% in the 20 months through Dec. 17 -- by far the biggest gain worldwide among companies with a market value above $1 billion.
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> That's despite posting negative revenue in its latest financial results, reporting just two full-time employees in its latest annual report, and boasting only a tenuous link to the semiconductor spending boom after shifting away from real estate in early 2024. A mix of online hype, a tiny free float and India's swelling base of retail investors drove 149 straight limit-up sessions, even as exchange officials and the company itself cautioned investors.
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> The rally is now showing signs of strain -- and regulators are taking a closer look. The Securities and Exchange Board of India has begun examining the surge in RRP's shares for potential wrongdoing, according to a person familiar with the matter who asked not to be identified discussing confidential information. The $1.7 billion stock, recently restricted by its exchange to trading just once a week, has fallen by 6% from its Nov. 7 peak.
[1] https://www.thehindubusinessline.com/markets/world-beating-55000-surge-in-india-ai-stock-fuels-bubble-fears/article70409977.ece
"Fears"?? (Score:2)
> Fuels Bubble Fears
Fears? More like "Predictions" or "Certainty".
RRP Electronics vs RRP Semiconductor (Score:3)
There's a well funded company called RRP Electronics which is working on package and test. They also have a famous cricketer as a strategic investor, whatever that means.
This RRP Semiconductor was a trading company which renamed itself and changed its business model.
As far as I can tell, the latter's revenue is nothing to write home about. And it's a Public Limited company which makes this even more weird, as those are expected to pass much more stringent criteria.
Shades of the Harshad Mehta era.
Re: RRP Electronics vs RRP Semiconductor (Score:2)
When you have 1.4 billion with avg IQs hovering in the late 70s, what can one expect from their stock market? There is no scope for rationality.
Pump and Dump (Score:4, Insightful)
A few people will soon get very rich, a large number of suckers will lose their shirts.
Re: Pump and Dump (Score:2)
It's so entrenched now basically everyone's investments/pensions will get hit by it. I imagine some smaller funds will be so into AI they'll die off.
Now's the time! (Score:2)
Sell your shirt and jump onto the bandwagon, the profits are literally guaranteed.
Re: (Score:3)
Why would I want 55,000 shirts?
Re: (Score:2)
To give to those who lost them, obviously. But who told you you're getting any?
Re: Now's the time! (Score:2)
You could wear a new, clean, shirt every day for the next 150 years without ever having to do laundry. Think of the savings in time and energy!