Indian AI Stock RRP Semiconductor Surges 55,000%, Now Under SEBI Investigation

• RRP Semiconductor Ltd, an Indian AI stock, saw an unprecedented 55,000% surge in 20 months, hitting upper circuits for 149 days.
• Despite the massive returns, the company reported negative revenue and a net loss, with only two full-time employees and a weak direct link to the AI/semiconductor sector.
• The surge is attributed to social media hype, a very low free-float of shares (98% held by promoters), and a rush by retail investors due to scarcity of AI stocks in India.
• SEBI has initiated an investigation into potential irregularities, and stock exchanges have limited trading in RRP shares to one day a week.
• The case highlights risks in AI-tagged stocks, urging investors to exercise caution despite the booming AI and semiconductor sectors.

Why It Matters: RRP Semiconductor's 55,000% surge raises 'AI bubble' concerns, now under SEBI investigation.