This AI stock has shot up 55,000% in the past two years

The stock terms of RRP Semiconductor Ltd. has surged by an eye-popping 55,000% successful the past 20 months. On Dec. 17, 2023, you could person bought shares for 10 Indian rupees (roughly 11 cents successful U.S. dollars). Today, those shares are selling for 11,095 rupees (approximately $123).

That banal surge comes contempt a fig of things that would origin reddish flags to sprout up astatine adjacent terminal velocity normally. The institution has conscionable 2 full-time employees, according to Bloomberg, and it posted antagonistic gross successful the astir caller quarter. And until aboriginal past year, it was focused connected the existent property industry, not semiconductors.

That hasn't mattered to investors, adjacent arsenic regulators person sounded immoderate warnings. (India's Securities and Exchange Board is investigating the institution for imaginable wrongdoing, which has caused the banal terms to autumn slightly, but thing compared to its rise.)

RRP began to determination into the AI abstraction successful 2024, erstwhile the company's proprietor acquired GD Trading and Agencies. That institution antecedently acted arsenic an agent/broker for a wider assortment of goods (from chemicals to user products), but shifted to semiconductor manufacturing aft the acquisition and changed its sanction to RRP Semiconductor.

That acceptable disconnected an capitalist firestorm. (India has a constricted marketplace for semiconductor companies, which mightiness explicate immoderate of the capitalist fervor.) One crushed the stock terms mightiness person escalated arsenic overmuch arsenic it does? Only 2% of the institution is publically traded. Founder Rajendra Chodankar and a tiny radical of associates clasp the different 98%, says Bloomberg.