Massive gains in a little-known Indian semiconductor firm were driven by hype and a limited float, overshadowing concerns about losses, disclosures, and regulatory scrutiny.
- Retail-driven speculation propelled a little-known Indian chipmaker to historic gains, even as losses mount.
- Regulators have stepped in amid concerns over trading activity, curbing liquidity, and intensifying scrutiny of the rally.
- The rally highlights how AI-linked narratives can fuel meme-stock behavior even in the absence of clear earnings visibility.
Technology stocks shone the brightest this year, underpinned by strong performances by artificial intelligence (AI) plays, including chipmakers, storage solutions companies, and data infrastructure companies. Granted, it was not a steady, steep ascent, but the trend was broadly to the upside, interspersed with minor pullbacks.
AI stalwart Nvidia is up a relatively less glamorous 29% this year, but its chip peers Micron, Broadcom, Intel, and AMD have had a stronger run. So did the storage solutions companies such as Western Digital, its spin-off company Sandisk, and Seagate Technology, as well as chip-equipment makers Lam Research and KLA Corp.
Breakout Story Or Shady Play?
But an obscure chipmaker in the eastern part of the world has beaten all these big giants fair and square in terms of stock performance — a David in the world of AI Goliaths.
However, the company’s opacity continues to deepen by the day. Welcome to the world of RRP Semiconductor. The Thane, India-based company has built an Outsourced Semiconductor Assembly & Test (OSAT) facility in Maharashtra for chip packaging, fabrication, and testing.
The company’s financial soundness, however, is in question. RRP Semi reported negative revenue of Rs. 682.14 lakhs ($68.2 million) for the quarter ended Sept. 30, 2025, according to its filings with the stock exchange. Its adjusted loss swung wildly from Rs. 0.21 a year ago to Rs. 5.25.
Incorporated as a trading investment firm in 1980, the company transitioned into the electronics and semiconductor industry, renaming itself RRP Semiconductor in May 2025, according to information from the stock market analytics firm Trendlyne.
RRP Semi landed in trouble with regulators after social media speculation that Indian cricketing great Sachin Tendulkar had invested in the company sent its shares soaring. The sports icon had attended the inauguration of the Navi Mumbai OSAT plant in late March 2024. In a filing with the BSE in mid-October, the company clarified that Tendulkar has not subscribed to its shares and that the company has not received land from the government of Maharashtra. This Indian state is located here.
Source: TradingView
For the year-to-date period, RRPSemi stock has skyrocketed about 6,000%. It hit a peak of Rs. 11,902 (intraday) on Monday and has been retreating amid regulatory scrutiny. The gains are much more outsized at 55,000% over the 20 months through Dec. 17, and, according to Bloomberg, this marked the most significant increase among companies worldwide with a market value above $1 billion. The company currently has a market cap of $1.7 billion.
Source: TradingView
RRP Semi — India’s Meme Darling?
Social-media frenzy, a small free float, and the company’s pivot to semiconductors, along with the swelling retail investor base, led to 149 straight “limit-up” sessions, according to Bloomberg. A limit-up session refers to a scenario when a stock or index reaches the upper circuit limit, or the pre-defined maximum allowable price increase for the day. According to a Bloomberg chart, RRP Semi has seen a surge in retail participation in the second half of the year.
RRP Semi is 98% owned by Rajendra Chodankar, the founder of RRP Group, the parent company, and some of his associates.
Traders in the stock had thrown caution to the wind and plunged long into the stock despite the exchanges and the company flagging potential issues. The Securities Exchange Board of India (SEBI), the stock market regulator in India, has begun looking into whether any wrongdoing is involved in RRP Semi’s stock surge, Bloomberg reported, citing people familiar with the matter. The stock is now restricted to trading only once a week.
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